JERUSALEM (Agencies) - Two senior Israeli envoys have returned from indirect talks with Hamas in Cairo without a deal on the release of captured soldier, Gilad Shalit. Israel accused the Palestinian group of hardening its position on a proposed prisoner exchange. Hamas played down suggestions a deal had been close and said its conditions had not changed. The talks are part of a final push by outgoing Israeli Prime Minister Ehud Olmert to secure a deal before he leaves office. Cpl Gilad Shalit was captured by Palestinian activists from Gaza, including some from Hamas' armed wing, in a cross-border raid in June 2006. Two other troops and two activists were killed in the raid. Olmert's office issued a terse statement saying: "It turns out that Hamas has hardened its stance... and presented harsh demands, despite the generous (Israeli) propositions that were made." A senior Hamas official, Osama Hamdan, said Israel negotiators had brought no new proposals to the talks. He suggested the Israelis appeared to believe Hamas would accept any offer ahead of the formation of a more hardline government in Israel by right-wing prime minister-designate Benjamin Netanyahu. Olmert rejected Hamas' terms for a prisoner swap, saying Israel would not cave in to demands by the organisation. Israel also stressed it would not ease its blockade of the Hamas-run Gaza Strip until a soldier held there since 2006 is freed. "We will not accept in any manner the conditions set by Hamas," Olmert said of the proposed prisoner swap under which the group would free Gilad Shalit in exchange for hundreds of Palestinian prisoners. Israel said it agreed to release 320 of 450 Palestinians Hamas wants freed, but claimed Hamas was being intransigent. "In the name of the state of Israel and its govt, I declare that there are red lines that we will not cross... we will not cave in to the demands of a terrorist group," he told a news conference. He insisted, however, that the government would continue to seek Shalit's release. "We will spare no effort," Olmert said. He spoke after envoys briefed the cabinet upon their return from two days of talks in Egypt, which has been mediating prisoner-swap negotiations between Israel and Hamas. A senior Israeli govt official said Israel will not ease its blockade of the Gaza Strip until Hamas release captive soldier Shalit. "There will be no expansion of the opening of the Gaza crossings until they release Gilad Shalit," the official said, asking not to be named.