The report has yet to be confirmed by Israeli sources.
Sources told the newspaper that the Israeli official said the talks may also include the issue of kidnapped soldier Gilad Shalit.
Two weeks ago, the IDF reportedly kidnapped Muhawesh al-Kadi, a senior member of Hamas' military wing in the Gaza Strip town of Rafah, who Israel believes was involved in Shalit's abduction.
A senior group member said following the operation that "the kidnapping of the senior official will not lead Israel to Gilad Shalit, and even the arrest of another 20 people like him won't change the situation."
The senior member confirmed that "as a top member of the military wing in this area, he was involved in the Shalit kidnapping in one way or another, but his role ended after the kidnapping."
The man added that Israel could only extract details from al-Kadi about his role in the abduction, but nothing more.
The most recent piece of information on Shalit came in the form of a statement made by Hamas politburo chief Khaled Mashaal, who said that the Israeli soldier was alive and in good condition.
In an interview with CNN less than a month ago, Mashaal said that his organization had handed over to Israel a list of 350 Palestinian prisoners it wished to see released, but blamed Israel for the failure of the talks.
According to Mashaal, one of the reasons for the failure was Israel's unwillingness to release Palestinian leaders. He added that the organization had even contacted Shalit's father Noam and informed him that his son was alive.