Hamas acknowledges Israel

But Mr Meshaal also ruled out any amending of the Hamas movement's charter, which calls for Israel's elimination, in the foreseeable future.

"There will remain a state called Israel, this is a matter of fact," Mr Meshaal said from Damascus. "The problem is not that there is an entity called Israel. The problem is that the Palestinian state is non-existent."

Israeli officials reacted coolly to Mr Meshaal's statement. "To accept Israel as a fact is to state reality," said foreign ministry spokesman Mark Regev. "The problem with Hamas until now is they say that this reality has to be wiped off the map. We have yet to see any change in Hamas on that vital issue."

Mr Meshaal said that Hamas's current demand is a Palestinian state in the occupied West Bank and Gaza Strip alongside Israel, and Israeli acceptance of the "right of return" of Palestinian refugees to their former homes in what became Israel.

"As a Palestinian today I speak of a Palestinian and Arab demand for a state on the 1967 borders," he said, referring to the West Bank and Gaza, which were captured by Israel during the 1967 Middle East war.

"It is true that in reality there will be an entity or state called Israel on the rest of Palestinian land. This is a reality but I won't deal with it in terms of recognising it or admitting it."

Mr Meshaal added that Hamas would continue to defy international demands that it recognises Israel, renounces violence and upholds existing Palestinian agreements with Israel despite the crippling international sanctions being imposed because of its stance.

Palestinian analyst Ghassan Khatib said Mr Meshaal's acknowledging that Israel is a reality is among "little steps" he is taking to convince the Israelis to deal with him as a counterpart and is also aimed at sowing divisions among Western nations that are imposing sanctions.

"His motive is to neutralise gradually the pressure on Hamas and to divide and create debate among Western nations and even within Israel," said Mr Khatib. "Hamas has proven it is strong and now he is trying to prove it can be flexible."

Nabil Amr, an adviser to the moderate Palestinian president, Mahmoud Abbas, whose Fatah movement is engaged in a violent power struggle with Hamas, said the remarks represented "nothing new".

A vast gulf exists between the Hamas goals for a state and Israel's insistence that it will never give up Arab east Jerusalem or allow Palestinian refugees to return from abroad.

Mr Meshaal called for international pressure on Israel to accept Palestinian demands in the interest of regional peace and security. He criticised US financial and political backing for Mr Abbas as interference.

Mr Meshaal also called for renewed dialogue between Hamas and Fatah to try to form a national unity government.

He did not threaten armed action by his Islamic group against Israel but warned that Palestinian frustration over a stalled peace process could lead to attacks.

Hamas has largely abided by a 26 November truce which has calmed Israeli-Palestinian violence in Gaza. It launched dozens of suicide bombings against Israel during a Palestinian uprising that began in 2000, but halted them in early 2005.

FATHER OFFERS TO BE HOSTAGE

THE father of a captured Israeli soldier held in the Gaza Strip yesterday offered to become a prisoner of Hamas militants if that would facilitate his son's release.

Noam Shalit, the father of Cpl Gilad Shalit, who was captured in June during a cross-border raid, said during an interview with the All for Peace radio station that he was ready to trade places with his son until all the demands of the kidnappers are fulfilled.

"I myself am willing to guarantee this and if necessary I am willing to travel to Gaza and stay with the security forces of Hamas until all demands are met," Mr Shalit said during an exchange with Abu Mujahid, the spokesman of the Popular Resistance Committees.