RAMALLAH, July 1 (Xinhua) -- A senior Palestinian lawmaker revealed on Saturday that Egypt had proposed a deal to end the current Gaza crisis over the abduction of an Israeli soldier by Palestinian militants.

    Lawmaker Abdallah Abdallah said that the Egyptian deal included the release of prisoners jailed by Israel in exchange for the freedom of the 19-year-old Gilad Shalit.

    "The deal also includes a resumption of peace negotiations between Israel and the Palestinians and an end to the ongoing Israeli large-scale military offensive in the Gaza Strip," he added.

    "Egypt hopes to get clear answers from both sides on several issues and the negotiations now are focusing on the prisoner swap," said Abdallah.

    Earlier, a statement issued by the Palestinian National Authority said that no satisfactory deal had been reached yet.

    The statement also said that the coming few hours were "crucial, sensitive and dangerous."

    An ongoing Israeli ground offensive in the Gaza Strip entered a fourth day on Saturday.

    The operation, the first of its kind since Israel pulled out forces and settlers from Gaza last summer after 38 years of occupation, is aimed to free Shalit.

    Earlier, Palestinian militants who held the Israeli soldier hostage demanded Israel release 1,000 Arab and Muslim prisoners jailed by Israel in exchange for information on the soldier, which was rejected by Israel.

    Egypt, a regional heavyweight, has been long playing a mediating role between the Palestinians and Israel.

    Egyptian President Hosni Mubarak said in an interview published on Friday that the Palestinian ruling Islamic Resistance Movement (Hamas) seemed to be willing to conditionally release the Israeli soldier. Enditem