Egypt has sent several positive signals to Israel in the past few days, both publicly and via quiet channels, indicating its desire to defuse the recent diplomatic tension between the two countries, a local daily said on November 11.

Egypt has softened its attitude after Foreign Minister David Levy expressed dissatisfaction with Cairo over its alleged resistance to normalization, its efforts to block dialog between Israel and Arab and Muslim states, and the abusive language it used toward Israel, Haaretz said.

The positive signs Egypt has sent included two declarations made by Egyptian Defense Minister Mohammed Hussein Tantawi on the importance of the "strategic peace" with Israel, the paper said.

Tantawi has also denied a statement, allegedly made by him late last month in a closed forum, that Egypt should prepare for a future war with Israel. A diplomatic crisis was sparked after an Israeli daily Maariv reported on the statement.

Levy had lodged protest with Egyptian Ambassador to Israel Mohammed Bassiouny over the statement. Bassiouny, however, said later that a thorough inquiry in Egypt had found Tantawi had not made such a statement.

Other signals sent by Egypt, the paper said, included a declaration by Foreign Minister Amr Mussa that there is no problem of any kind in Egypt's relations with Israel, and an announcement by Cairo that it agrees to convene a regional economic conference unconditionally.

Besides, Egypt has renewed contacts with Israel on supplying natural gas to Israel. Egyptian Minister of Petroleum Amin Sameh Samir Fahmi met a few days ago with an Israeli diplomat, Haaretz quoted sources in the Foreign Ministry as saying.

The Egyptians have made it clear that they are interested in a quiet dialogue, and in recent weeks have permitted a number of businessmen to visit Israel to test the waters for possible deals, the report said.

Thirty years after Egypt signed a peace treaty with Israel, the first of such kind between Israel and the Arab world, Israel complains that the two countries are still in a "cold peace."

One of the major issues of contention between the two countries was the renewal of the multilateral talks stipulated by the Middle East peace conference held in Madrid in 1991.

Balking at the resumption of the talks at a state level, Egypt is proposing instead discussions on regional projects and quiet talks, through Washington, on arms control.

Israel has rejected this idea, insisting that the multilateral talks be held and in a public way.