The release of kidnapped IDF soldier Gilad Shalit is a prerequisite for the reopening of the Rafah crossing between the Gaza Strip and Egypt, said Deputy Defense Minister MK Matan Vilnai (Labor-Meimad) Tuesday.

The deputy defense minister was asked about IDF Chief of Staff Lieutenant-General Gabi Ashkenazi's recent comment which suggested that the IDF had precise information as to Gilad Shalit's whereabouts, and said that Ashkenazi's words were "completely blown out of proportion.

"He didn’t say anything new. We know (Shalit) is held by Hamas; they have acknowledged that and we demand they return him. We will have to pay a certain price and that's it."

Vilnai toured the Kerem Shalom goods crossing and noted that its opening was a part of the ongoing negotiations for Shalit's release and the attempt to ease the everyday lives of Gaza residents.

"We are preparing to build a new goods terminal in Kerem Shalom in order to facilitate the transfer of larger quantities of goods into the Strip, but that can't go ahead if we can't make any headway in Shalit's case."

The negotiations, he added, are handled by Ofer Dekel, the Prime Minister's Office emissary heading Israel's efforts on behalf of its missing and captive soldiers.

As for the so-far successful ceasefire between Israel aha Hamas, Vilnai said he was "not surprised. There is a clear Palestinian interest which coincides with the Israeli one, to keep things calm. Should the reality of sporadic rocket fire reemerge, we'll have to reconsider our action."

Commenting on Defense Minister Ehud Barak's statement that "an IDF operation in the Gaza Strip is yet to come," Vilnai clarified that the situation in the field will dictate Israel's reaction.

As for the ominous reports on the growing weapons-smuggling operation in the Gaza Strip, Vilnai warned against excess panic: "The Shin Bet has clear-cut data on the subject and it indicated little to no increase… We're keeping a close eye on the matter and we’re pressuring the Egyptians to continue cracking down on smugglers."