Israel has agreed on a prisoner exchange with the Lebanese Shia armed group Hizb Allah for the return of an Israeli businessman and the bodies of three Israeli soldiers. Zvi Rish, the Israeli lawyer that represents two Lebanese armed fighters, told the Associated Press on Saturday his clients and other prisoners from Arab countries would be freed in exchange for Israeli businessman Elhanan Tannenbaum and the bodies of three Israeli soldiers - all kidnapped by the Lebanese group Hizb Allah in October 2000. Rish said the deal would include the release of his clients, Hizb Allah leaders Mustafa Dirani and Abd al-Karim Ubeid. **German Confirmation*** Germany's government, which helped broker the deal, confirmed the news. "With this agreement Israel and Hizb Allah have achieved a breakthrough in seeking to soothe one of the most painful consequences of the Middle East conflict," the German government said in a statement. "We expect the deal to be implemented over the course of the next week," German government intelligence coordinator Ernst Uhrlau told reporters. He said the prisoners would probably first be flown to Germany before being flown home. Uhrlau said Iran had played a helpful role in the talks. Asked if Iran had helped put pressure on Hizb Allah, he said: "Iran can be very persuasive in its arguments." **Hizb Allah Statement*** The Lebanese group confirmed the deal saying it will include the release of 23 Lebanese and 12 Arab prisoners. "Hizb Allah confirms what was announced by the German mediator about an agreement on exchanging captives and prisoners with the Israeli enemy, and confirms the details in the German announcement," a Hizb Allah statement said. Israel captured most of its Lebanese prisoners during its invasions and occupation of Lebanese territory from 1982 to 2000. From its part, the Israeli government confirmed the exchange deal. "According to a government decision taken on 9 November, it has been arranged for the return of the three Israel Defence Forces (IDF) soldiers ... who were kidnapped on 7 October, 2000 ... and the civilian Elhanan Tannenbaum," a statement from the office of Prime Minister Ariel Sharon said. In exchange for the return of the Israelis, the Jewish state would release a number of prisoners held in Israel, it said. **Kantar Will not Be Freed*** The Lebanese fighter Samir Kantar, whom Israel jailed in 1979 for killing three members of an Israeli family during a raid in northern Israel, would not be freed. Aljazeera reported that Israel will hold on to Kantar for another three months while resuming negotiations between the two sides over Ron Arad, an Israeli pilot who was shot down over Lebanon in 1986. Israel said on Saturday it will not free Kantar, until it has received "substantial proof" of the fate of Arad. Arad's exclusion from the current deal has drawn furious protests from Arad's family and thousands of supporters in Israel who hoped Dirani and Ubeid would be used as bargaining chips for the airman's release. There have been no known signs of life from Arad since 1988, but his relatives believe he is still alive, and the Israeli military has not declared him dead. Previously, the exchange had been held up by Hizb Allah leader Sheikh Hasan Nasr Allah, who demanded Kantar's release. Kantar, who belonged to a Palestinian group at the time of the raid, is the longest-held Lebanese prisoner and is serving a 542-year sentence. Israel had balked at releasing Kantar because, in the words of Israeli officials, he has "blood on his hands". **PHOTO CAPTION*** Sheikh Abd al-Karim Obeid (L) and Mustafa Dirani (R) will be among those to be released.