The sources said that the Israeli soldier manning the Beit Hanoun crossing (Erez crossing), on the northern border between Gaza Strip and Israel, arrested a Palestinian resident.

The sources said that the forces arrested Mohammed Za'rab while accompanying his brother for treatment from cancer in the Israeli hospital of Beilinson.

The development came days after Hamas said that it canceled a meeting to discuss the release of Shalit in exchange with hundreds of Palestinian prisoners due to the situation in Egypt.

Hamas said that the closure of Rafah crossing on the border between Gaza Strip and Egypt has prevented the delegation from heading to Damascus to meet German mediator Gerhard Konard in an attempt to reach a prisoner swap deal.

Since December 2009, the German mediator and Egypt had failed to finalize the prisoners' swap deal between Hamas and Israel due to the two sides' differences.

Hamas wants Israel to free up to 1,000 Palestinians in Israeli prisons in exchange for the release of Shalit, and the Palestinian movement has reportedly presented a list of 450 names in Israeli prisons.

Israel also objects to freeing Israeli Arab prisoners as well as several Hamas military wing leaders. Another issue yet to be settled is Israel's demand to deport almost 100 of the 450 "heavy" prisoners set to be released in the deal.

According to the recent Palestinian statistics, there are 6,700 Palestinians currently held in 10 prisons and 3 detention camps in Israel and in the West Bank. There are 300 prisoners under the age of 18. Israel also holds 37 females and 13 members of the Palestine Legislative Council.