“Up to now, the Israeli side does not accept,” these conditions, he added, in comments run on the Al Ahram’s website.

His comments gave no details of the conditions.

“I am personally deploying all possible efforts, late into the night, to avoid a real catastrophe which would scorch the whole region,” he said.

Mubarak added that he had contacted Palestinian president Mahmud Abbas and the French and Syrian leaders Jacques Chirac and Bashar al-Assad as well as Israeli Prime Minister Ehud Olmert.

“The Israeli leaders promised not to spill the blood of innocent Palestinian civilians,” he said, adding that he had warned Hamas leaders against taking up “radical positions”.

Egypt’s al-Ahram newspaper also said Mubarak told it that a handover agreement with Israel has not yet been reached.

Israeli sources have not commented on such a deal.

Three militant groups, including an armed wing of Hamas, have claimed responsibility for the attack during which Shalit was captured. None have said whether the soldier is still alive.

Israeli troops and tanks rolled into southern Gaza on Wednesday in their first raid on the Palestinian enclave.

Israeli armour and troops have also massed near central and northern Gaza, from which militants have fired dozens of rockets into Israel.

ASSAULT DELAYED: Senior diplomatic sources said Israel has delayed a large-scale Gaza assault to allow for Egypt-mediated talks to try to secure the soldier’s release.