Israeli regime’s President Shimon Peres was heading to Cairo on Sunday for talks with Egyptian President Hosni Mubarak, Peres spokeswoman said.

“Mr Peres is due to meet Egyptian President Hosni Mubarak one on one during the late morning in Cairo,” Peres spokeswoman Ayelet Frish said. She said that he will return to the occupied lands in the afternoon.

She added that the two will discuss “the latest developments in the Middle East as well as” settlement talks between Israeli regime and the Palestinians.

They are due to make a statement to the press after their meeting, she said.

Israeli occupying regime’s media said that the discussions were due to touch on German-mediated talks for a prisoner exchange between Israeli occupying regime and the Hamas movement in Gaza Strip.

The deal would see Israeli soldier Gilad Shalit, captured by Hamas in June 2006, released in return for hundreds of Palestinian prisoners in Israeli regime’s jails.

Israeli media also said that Peres could bring up the possibility of creating a Palestinian state with provisional borders while the two sides carry out their negotiations.

Such a proposal has in the past been rejected by the Palestinians.