Israel and Islamic Hamas movement will start a new round of indirect negotiations in Cairo next week in a bid to reach an agreement on prisoners exchange, sources said on Thursday.

The sources told Xinhua that Egypt and Germany will sponsor the talks.

A progress has been reached recently on the issue of Gilad Shalit, the Israeli soldier who has been holding by Hamas in the Gaza Strip for more than three years.

Israel is set to free 20 female Palestinian prisoners by Friday in exchange for a video tape showing the captive Corporal.

The sources said that Egyptian and German efforts over the past two weeks have succeeded to push the stalled negotiations forward.

"The negotiations are hard and difficult but Hamas spares no effort to accomplish a swap meeting the Palestinian people's hopes," the source said.

As a condition to free Shalit, Hamas wants Israel to release more than 1,000 Palestinians and Arab prisoners, among them a controversial list of 450 names Hamas insists to select. Israel says the list includes senior prisoners who can not be freed since they had been involved in killing Israeli people.

The source said that the talks would "discuss all the details and will involve every prisoner" in the list.