AP is reporting that posibility:

Palestinian President Mahmoud Abbas said Thursday there could be an “imminent solution” for the release of an Israeli soldier captured by Palestinian militants. “With regards to the issue of the abducted Israeli soldier, I have reiterated that there are ongoing efforts that lead us to believe in an imminent solution,” Abbas said, speaking through a translator.

Good news, if true, but we’ll have to wait for this to play out.

UPDATE: Abbas’ Remarks are now being “clarified.”

Palestinian President Mahmoud Abbas said Thursday that intense negotiations were under way to free an Israeli soldier captured by Hamas-linked militants. However, a Palestinian lawmaker and a spokesman for the Hamas military denied that the soldier’s release could be imminent.

The original translation was from an official translator from arabic to italian. The AP Translation:

“I have told the prime minister regarding the issue of the captured soldier that we are undertaking intensive efforts to end this as soon as possible,”

While I understand the possibility, or even likelihood, of this being a mis-translation, I think it is much more an indication of the various “branches” of Hamas having their very different agendas.

In response to the initial translation, Hamas spokesman Abu Obeida said “from our side there is nothing new.” Palestinian lawmaker Saeb Erekat said it was “premature” to say the soldier, Cpl. Gilad Shalit, is about to be released.

Until Cpl. Shalit is released nothing has really changed.