There were celebrations in both Gaza and Jerusalem after the prisoner swap was announced. In a televised address, Israel's Prime Minister Benjamin Netanyahu said both sides had now signed the deal, which had been brokered by Egypt. He thanked the Egyptian mediators, and the German government which had sent its foreign intelligence (BND) officer Gerhard Konrad to negotiate with Hamas over the past five years. Netnayahu said he'd met with Gilad Shalit's parents Noam and Aviva, and told them their son would be home within days.

"This is the best deal we could get. I don't think we'd have reached a better deal if we'd waited - and there was a real chance that this window of opportunities might have closed and we'd have no deal at all."

Under the deal, Israel will release about 1,000 Palestinian prisoners from its jails in two tranches. The first 450 will be released in a few days time, in a direct swap for Gilad Shalit. These prisoners were nominated by Hamas, which insisted on including militants who had taken part in or planned suicide attacks against Israeli civilians. The next lot of 550 prisoners will be chosen by Israel and released in two months time. Reaching agreement on the names of the 450 prisoners on the first list was what took more than five years of failed negotiations between the two sides.

The Shalit family were in the protest tent they set up outside the prime minister's residence in Jerusalem some 15 months ago when they heard the news. For the first time in years, smiles were seen on their faces. Noam Shalit described the struggle to free his son as a Sysiphean one.

Long struggle

"It's been 1,935 hard days and long nights before this agreement was signed for our son to be returned home. From our point of view it will only be over when we see Gilad come home, and walk down the steps into our house. Only then will we be able to say that the circle has closed."

Shalit praised Prime Minister Netanyahu who he said had signed the deal, "albeit with a delay." Hundreds of Israelis streamed to the Jerusalem protest tent for a spontaneous celebration. Traffic was blocked as they took over the street, singing dancing and chanting.

Seventeen-year-old high school student Emanuela Cohen said she did not know Gilad Shalit personally, but this was still one of the happiest days of her life.

"It's better than winning the lottery - he's my brother, I love him, and I believe am almost as happy as his family."

Psychology student Emunah Ben Yashar agreed. "It's a really exciting happy day for us, it's like all our hearts are in the one place."

There were also celebrations on the streets of Gaza city, with soldiers handing out sweets and firing into the air. Hamas leaders in Gaza city waved to cheering crowds. In Damascus, exiled political leader Khaled Maashal gave a speech broadcast on the Hamas satellite TV channel.

"We are releasing 1,000 prisoners, including all 27 women held in Israeli jails," said Maashal. "They come from Gaza, from the West Bank, from East Jerusalem and include Arabs who live inside Israel. This geography tells the story. Our suffering is one suffering and our obligation is one obligation. This is an achievement for all Palestinians."

Inside Israel, the terms of the prisoner swap have consistently aroused a certain level of opposition. The Israeli public broadly supports paying this price to return Gilad Shalit, because conscription is compulsory in Israel and so the experience of worrying about sons in military service is almost universal here. Most Israeli families could identify with the Shalit family's struggle to free their son. A large majority of the Israeli cabinet voted to approve the deal, however three cabinet ministers, including hard line Foreign Minster Avigdor Lieberman voted against.

Risks remain

Opponents are worried about two main risks from this prisoner swap. First that the prisoners Israel will release will simply return to their previous militant activity and plan or carry out further suicide attacks. Second, that it will encourage more kidnappings of Israeli soldiers. Some of those opponents came to the spontaneous celebration at the Shalit family's protest tent in Jerusalem Tuesday night. Joel Davidi was born in the United States and emigrated to Israel after completing high school.

"I think there's way more worry and incredulity than joy and exhalation. I have not joined in the happiness. I am happy that the Shalit family will be seeing there son, don't misunderstand me but the price that we paid is way way beyond the price we should have paid."

People who lost their relatives in suicide bombings also turned up when they realized that the militants who had been involved in their bombings were among those to be released. Lea Schijveschuurder, 20, was 10 years old when there was a suicide bombing at the Sbarro Pizza Parlour in Jerusalem in 2001. Five members of her family including her parents were killed there. Ahlam Tamimi, the Palestinian woman who helped the bomber reach the pizza parlour, will be released in this prisoner swap.

"Of course I am opposed to this prisoner swap," said Lea Schijveschuurder. "The blood of my parents cries out from their graves. It's not for me, it's for all of Israel. I've already lost my family, I've been coping with that for 10 years. People are naïve, they're naïve, they won't be able to cope when it happens to them."

She held up a sign saying "I hope the terrorist who carried out the bombing that killed my parents will carry out a bombing against the Shalit family or the Prime Minister."

Psychology student Emunah Ben Yashar said: "What she wrote is not alright, but it is a question. We say that our army is stong enough and that we should not be afraid to bring our son home. I'm not sure if that's true, but it's the way you feel about family. That's what sent us out here today and made us accept the release of 1,000 prisoners who could harm us. He's worth that risk, I guess."

Author: Irris Maker, Jerusalem
Editor: Rob Mudge