Israeli PM rules out Hamas truce

Israel will not agree to a truce in Gaza unless an Israeli soldier held by Palestinian militants is freed, Israeli Prime Minister Ehud Olmert has said.

The Israeli soldier was captured by Palestinian militants in 2006.

There have been reports that Egypt was close to brokering a long-term truce between Hamas and Israel.

A punishing three-week Israeli assault on Gaza aimed at stopping militant rocket on Israel fire ended with separate ceasefires in January.

The uneasy calm has been punctuated by exchanges of fire between the two sides.

"The position of the prime minister is that Israel won't reach any arrangement on a truce before the release of Gilad Shalit," Mr Olmert's office said in a statement.