Israel says Hamas captive may be "bargaining chip"

JERUSALEM, Sep 10 (Reuters) A Hamas militant seized by Israel in the Gaza Strip last week could be a ''bargaining chip'' in any prisoner exchange deal for a missing Israeli soldier, an Israeli minister said today.

''Yes, of course,'' Public Security Minister Avi Dichter told Army Radio when asked whether Mhawesh al-Qadi, could be used as a ''bargaining chip'' in efforts to free soldier Gilad Shalit from Hamas captors in Gaza. Al-Qadi was seized on Friday by Israeli troops posing as as members of Hamas' Executive Force security wing.

''In the end, terrorists will be released to the Palestinian Authority or to Hamas in Gaza in return for the release of Gilad Shalit,'' Dichter said.

Hamas, which seized control of Gaza in June, has demanded that Israel release hundreds of Palestinian prisoners in exchange for Shalit, whom it captured in June 2006.

Israel has said before that a deal is possible but has baulked at freeing senior militants.

REUTERS GL BD1518