Are the stalled negotiations for the release of kidnapped IDF soldier Gilad Shalit about to take a new turn? London-based Arabic newspaper al-Quds al-Arabi quoted a Hamas source Thursday as saying the organization's leaders have decided to find a new mediator to take over for Egypt and broker a deal with Israel.

Hamas, said the report, no longer believes Egypt can play an impartial role in the talks, since it seems to favor Israel's demands. According to al-Quds al-Arabi sources, Hamas officials have contacted several Arab and foreign officials, in hopes to enlist them in favor of the feat.

The sources went on to tell the newspaper that Israel too is unhappy with the Egyptian meditation, saying Ofer Dekel, the Prime Minister's Office emissary heading Israel's efforts on behalf of its missing and captive soldiers, has informed several foreign officials involved in the matter that Israel would like to see a new third party broker the talks.

Nevertheless, continued the report, Dekel believes that should Egypt be ousted from the process altogether, it would cause a diplomatic rift between Jerusalem and Cairo. Israel, added the sources, is considering letting Egypt continue to play a major – though not leading – role in the negotiations.

Al-Quds al-Arabi reported recently of tensions rising between Egypt and Hamas leadership, after Egyptian officials reportedly warned Hamas Israel may try to assassinate its senior officials should the negotiations to free Shalit go south.

Hamas was reportedly outraged by what was perceived as a blunt attempt to pressure the group into elasticizing its position.

Egyptian officials have denied the reports suggesting that Cairo will no longer head the efforts for Shalit's release. Egyptian Foreign Ministry's Spokesman Hossam Zaki called the reports "empty and untrue."