Hamas said to threaten renewed fighting over any change to 'status quo,' reject proposed condition of releasing captives in exchange for Strip's reconstruction

Khaled Mashaal says Israel will have to meet Palestinian terror group's demands 'when we hold an Israeli soldier'

Derech Eretz MK Zvi Hauser, who leads the powerful Foreign Affairs and Defense Committee, calls proposed deal that would release Palestinian security prisoners 'outrageous'

Ismail Haniyeh says Cairo also involved in reconciliation talks, discussions ongoing over Rafah border crossing

Previous Israeli policy was only to keep bodies of Hamas terrorists for a potential prisoner exchange, and new guidelines may be susceptible to legal challenge

Palestinian sources quoted saying reported proposal doesn't meet terror group's core demands and that it wants a deal but 'not at all costs'

Terror group yet to respond to outline, which was conveyed to it via a third party several weeks ago, report says

Dampening prospects of swap, Palestinian terror group demands Israel free some 50 terror convicts released in 2011 and arrested 3 years later

'We will make the enemy bite his fingers in remorse for this sinful decision,' official in military wing says in speech marking anniversary of Shalit kidnapping

Defense Minister Gantz, who railed against paying 'protection' to Hamas during election campaign, mum on report of such a deal under his watch