As part of efforts to save failing peace talks between Israel and the Palestinians, the United States has reportedly agreed to release imprisoned Israeli spy Jonathan Pollard as part of a compromise to continue negotiations.

Israeli’s Army Radio reported the news on Wednesday, citing official sources in Jerusalem. Should the deal happen, Israel would have to agree to release the fourth and last installment of terrorists from Israeli prison as a “gesture” to the Palestinian Authority.

PA negotiators would also have to agree to complete the current round of peace negotiations as well as extend the talks to the end of 2014.

Senior Israeli officials told Army Radio that if no mutual consensus is reached between Israel and the PA regarding the last batch of prisoner releases, then peace talks would definitely collapse. The fourth installment was originally scheduled to take place Saturday night.

U.S. Secretary of State John Kerry and his negotiating team put forth the current proposal in an effort to save talks. Israeli Prime Minister Benjamin Netanyahu made it clear to the Obama administration that he would block the release of the prisoners should the PA not agree to extend peace talks past their April deadline.

The proposal is conditional on Israel agreeing and following through with the fourth batch of prisoner release. Pollard has previously stated that he would never agree to be released in exchange for terrorists.

On Tuesday, MK Motti Yogev (Jewish Home) criticized the prisoner swap, calling the U.S.’s use of Pollard as a bargaining chip as “moral degradation.”

“Pollard should have been released a long time ago,” Yogev said. “His punishment has been far beyond proportional for such an offense. He is in his thirtieth year in prison. They wouldn’t even let him go to his father’s funeral or shiva. If we take into account the fact that he is ill, there is a humanitarian issue here.”

Yogev slammed President Obama and his administration’s foreign policy ethics:

“If the Americans are thinking about using Pollard as a bargaining chip, then this is yet another step in the moral deterioration of the foreign policy of President Obama and his Secretary of State, John Kerry, and we should not cooperate with this. I do not want to insult them. There is a lot of strategic cooperation between Israel and the U.S., but they have been showing their immorality bit by bit.”

Economy Minister Naftali Bennett expressed doubt on the reported prisoner swap. The Jewish Home party leader told Army Radio that he has not yet received any confirmation from Netanyahu regarding Pollard’s release.

“It’s not certain to happen, and in any case, we need to stop begging [Abbas] to agree to conduct negotiations with us,” Bennett said. “I’m very skeptical. I didn’t see the United States reach its hand into its pocket on the Pollard issue and I haven’t heard [about this] from the prime minister. I don’t assume that it will really happen.”

Update: State Department Spokeswoman Jen Psaki told Army Radio on Wednesday that at the moment “there are currently no plans to release Jonathan Pollard.”