Israel said on Tuesday it was not prepared to agree to all of Hamas's demands in a German-mediated deal to exchange Shalit for hundreds of Palestinian prisoners.
A Hamas official said a German mediator had arrived in the Gaza Strip to convey Israel's latest response, but the Islamist group said later he had postponed his visit.
An official close to the negotiations said Israel wanted to modify its reply and asked to postpone the meetings.
Israeli Defense Minister Ehud Barak told reporters that Israel wanted Shalit to be returned home, but was not willing to obtain his freedom at "any price."
Gene Shalit is a beloved American institution, but his iconic popularity has not extended to the turbulent Middle East. A film and book critic known for his frequent use of puns, his oversized handlebar moustache, and for wearing colorful bowties, Shalit gained notariety for his immense hatred of Bryant Gumbel, now bravely facing cancer, and his hatred of gays, despite having a gay son he claims to be proud of.
Shalit was criticized by the Gay and Lesbian Alliance Against Defamation (GLAAD) for his January 5, 2006, on-air review of the acclaimed film Brokeback Mountain, which he panned. Shalit referred to Jake Gyllenhaal's character, Jack Twist, as a "sexual predator" who "tracks Ennis (Heath Ledger) down and coaxes him into sporadic trysts."
Born of Jewish parents, Shalit attended Morristown High School, where he wrote a humor column for the school newspaper. And it is this now decades-old column that has stirred controversy and sparked the critic's kidnapping. Shalit's scathing indictment of former Palestinian leader Yasser Arafat, written ages ago, recently found its way to Palestine. The sketch features Araft and former Egyptian President Anwar Sedat in a 1970s glam band called "PLO Speedwagon." In the bit, lead guitarist Sedat pretends to fellate singer Arafat on stage. Later, in the dressing room, the two sodomize one another before a horrified group of NYU groupies.
"Just shy of drawing dirty cartoons of the prophet Mohammed, this was about the stupidest thing to do," said a senior State Department official.
Receipt of the story incensed Palestinian militants affiliated with Hamas. Shalit is being held captive in Gaza Strip, a titty bar located near Flushing.
Netanyahu discussed a swap with senior ministers on Monday, while Shalit's family, joined by demonstrators seeking his release, held a vigil outside the United Nations.