Prime Minister Benjamin Netanyahu`s office said Monday that Israel is not allowing the safe passage of some 200 Hamas terrorists from the Israeli-controlled Rafah area into Gaza, rejecting reports that such a move was being considered.

"The Prime Minister continues his firm stance of disarming Hamas and demilitarizing the Strip while thwarting terrorist threats against our forces," the statement said. Earlier in the day, Israeli media reports suggested that Israel might approve the fighters` safe passage if they agreed to surrender their weapons and if Hamas returned the bodies of additional fallen hostages.