Israel denied that it was in negotiations to exchange prisoners with the Lebanese Shiite militia Hezbollah, public radio reported, quoting sources at the prime minister's office.
Hezbollah leader Hassan Nasrallah had told the private Lebanese television channel NTV earlier that indirect talks had recently begun with parliament speaker Nabih Berri acting as an intermediary.
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During a telephone conversation on Sunday between UN Secretary General Kofi Annan and Israeli Prime Minister Ehud Olmert, the premier stressed that "the most important thing for Israel was the immediate freeing" of the soldiers seized by Hezbollah, Olmert's office said in a statement.
"According to (UN Security Council) resolution 1701 the Lebanese government is responsible" for the fate of the soldiers, the statement added.
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