When asked if Palestinian President Mahmoud Abbas was helping to negotiate his release, Halutz said he did not know.

However, Palestinian sources are saying that Abbas is involved in talks with militants to gain the soldier's release. The Egyptians are mediating the discussions, the sources said.

Ghazi Hamad, a spokesman for the Palestinian Cabinet, said the Palestinian government -- while still trying to confirm details about the incident -- was trying to resolve the kidnapping issue diplomatically, via the president, the Egyptians and others.

He asked Palestinian factions to keep the soldier alive and "deal with him" in a "good way." Hamad said the Palestinian government is asking Israel not to resort to a "military escalation" and avoid making the situation more complicated."

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