Egypt said on Saturday it was considering the release of a US-Israeli dual national suspected of spying for the Jewish state, the official MENA news agency reported.
Ilan Grapel has been in custody since June 12.
"Cairo is considering the release of Ilan Grapel, a US citizen accused of spying for Israel during the 25 January revolution, especially after promises from the US of offering more political and economic support in return," MENA said without elaborating.
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Grapel's parents were allowed to visit him on Saturday, along with the US consul general to Egypt, Roberto Powers, MENA said.
Grapel has been accused of being an agent with Israel's Mossad intelligence agency and of sowing sectarian strife and chaos in Egypt during the uprising which ousted president Hosni Mubarak in February.
Two days after his arrest in Egypt, which in 1979 became the first Arab state to make peace with Israel, Israeli Foreign Minister Avigdor Lieberman strongly denied he was spy.
He insisted the whole thing was a mistake and accused Egyptian authorities of "bizarre behaviour."