Annan has had little to show for his mission so far, but a senior Israeli political source said Israel would discuss freeing Lebanese prisoners for two soldiers held by Hezbollah if the two were handed over to the Lebanese government.
The soldiers' capture in a Hezbollah raid on July 12 sparked the 34-day war. The Shiite guerrillas said at the outset it wanted to swap the Israelis for Lebanese prisoners.
Any negotiations would be held with the Beirut government, via a mediator, not with Hezbollah, the source said. Israel, which has previously said the soldiers must be freed unconditionally, conveyed its stance to Annan on Wednesday, the source added.
Annan has said he is trying to speed the arrival of extra UN peacekeepers in south Lebanon, where the first big contingent of 800 Italian troops is due Friday.
German Defense Minister Franz Josef Jung said he expected Germany to contribute more than 1,200 troops to the UN force.
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