It was make or break time, and until 1am when Israeli ministers broke from more than four hours of intense talks, it looked like make.
All the signs pointed to a deal that would see the exchange of one Israeli soldier for hundreds of Palestinian ones.
Israeli public opinion overwhelmingly supports a Shalit release even if the price is freeing prisoners with Israeli blood on their hands and Hamas desperately needs a popularity boost ahead of possible unity talks that would culminate in national elections.
But, once again, it was not to be.
The news breaking in the early hours of Tuesday morning that the "forum of seven" cabinet ministers had batted the ball straight back into Hamas' court.
Careful not to use the word "rejection" the prime minister put out a carefully worded statement that boiled down to two words: no decision.
But in sending the deal back to Hamas, Israel effectively rejected it and put an end to any hope of a breakthrough in 2009 because Hamas have already made clear they've given all they're prepared to give – anything more is too high a price for them.
And as if it wasn't confusing enough to know on whose table the deal is on at any given time, the media blackout surrounding this round of negotiations means journalists are left with leaked sources, rumours and speculation as to what exactly this deal includes and what the sticking points are.
Add to that the obvious frustration of German and Egyptian mediators (the latter particularly impatient – next to Hamas, Hezbollah prisoner swaps look like a walk in the park) and there is an air of complete hopelessness surrounding the whole situation. We're back to square one.
Meanwhile, freeing Gilad Shalit continues to be Israel's national obsession – bumper stickers, posters, t-shirts, protests, marches and it goes on - its impossible to go two days without his name being mentioned in the papers.
The Palestinian prisoners, whose names aren't so famous, shouldn't be forgotton in all this.
They are also someone's son, daughter, brother or mother and while we continue to feel the frustration of a deal that takes one step forward and ten steps back we should also remember those who have been waiting years to be reunited with loved ones and for whom this back-and-forth is a lot more than an irritation.
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