Israel will release 1,400 Palestinian prisoners in exchange for its soldier taken hostage in Gaza since late June, the Qatar-based al-Sharq daily reported on Monday.
According to a deal, which will take effect within 48 hours, Israel will release Hamas ministers and lawmakers and reopen crossing points into Gaza, the report said.
Israel will also stop assassinations and return tax revenues owned to the Palestinian National Authority, it added.
In addition to the release of Corporal Gilad Shalit, who was seized by Palestinian militant groups on June 25, the Palestinians are asked to stop rocket attacks into Israel, said the report.
A number of Arab, Islamic, European countries and the United States played a role in achieving the deal "which will get the Palestinian National Authority back to the peace track in 48 hours, " said the newspaper, which said it obtained a copy of the secret deal.
According to the "copy of the deal," Palestinian President Mahmoud Abbas threatened to pull back the Palestine Liberation Organization's recognition of Israel and resign "if Israeli massacres against his people continued."
The report said that Israel would call off all measures taken after the capture of Shalit.