Al-Kantar, pictured, is expected to be freed in exchange for Israeli prisoners [File: AFP]

According to the Jerusalem Post newspaper, the exchange is to be conducted within 30 days.

Israeli Army Radio also said that the swap is likely to involve two Israeli soldiers captured by Hezbollah in 2006.
 
The capture sparked a 34-day war between Israeli and Hezbollah forces.

The prisoner swap is also likely to include the release of Samir al-Kantar, the longest-held Hezbollah prisoner in Israel.
 
Support to 'resistance'

"The Iraqis, Shia and Sunni, who took part in the political process wanted to give it a chance," he said.

"But now that the real American goal in Iraq has been exposed the Iraqi government is put to a test."

The speech by Nasrallah, aired over a video link to supporters, was part of celebrations to mark eight years since Israeli forces withdrew from southern Lebanon.
 
It is the first time Nasrallah has issued a challenge to the Iraqi government to take a stand against the US military presence in Iraq.

"The Americans allowed the elections and the formation of parliament and a government so that they get an Iraqi legitimisation of the occupation," he said, referring to a reported Iraqi-American agreement that would allow the US to have a permanent presence in Iraq.
 
Beirut clash
 
In downtown Beirut, security officials said at least nine people were injured during the celebrations on Monday night.

Supporters of the ruling coalition and opposition loyalists traded insults before shooting at each other late on Monday.
 
The shooting took place in the Corniche Mazraa area, an avenue separating Shia and Sunni areas of Beirut.
 
The fighting came a day after Michel Sleiman, the former chief of the Lebanese army, was elected Lebanon's new president.
 
Sleiman was elected in a parliamentary session after Sheikh Hamad bin Khalifa Al-Thani, the emir of Qatar, helped broker a deal to end a dispute between rival political factions in Lebanon.
 
In his speech, Nasrallah welcomed Sleiman's election as president, calling it a new chapter for Lebanon.
 
"The election of Michel Sleiman brings hope to the Lebanese of a new era and a new beginning," he said.
 
"His inaugural speech expressed the spirit of consensus that he promised to act upon in the upcoming period ... And this is what Lebanon needs."
 
Amal Saad-Ghorayeb, a political analyst and expert on Hezbollah, told Al Jazeera that Nasrallah's speech was "quite historic and strategic".
 
"On the one hand, many people expected him to be more apologetic about the events [clashes between pro- and anti-government fighters] of the last two weeks, but he was quite assertive,"  she said.
 
"For example, he talked not only about a defence strategy but a liberation strategy for Lebanon, in relation to the Shebaa Farms region [which is still occupied by Israeli forces]."
 
Appeal for reconciliation
 
Nasrallah's speech came after Lebanon's 127-member parliament voted overwhelmingly in favour of Sleiman becoming president on Sunday.

Sleiman was elected Lebanon's president after a deal was brokered in Qatar [AFP]

In his inaugural speech, Sleiman appealed to Lebanese political factions to work together to avoid internal strife.
 
Nasrallah said on Monday that Hezbollah did not want to take over the country or undermine political institutions.
 
"I am speaking as Hezbollah - we don't want power or authority, we don't want to rule Lebanon, we do not want to impose our thoughts on the Lebanese," he said.
 
"They call us the party of wilayat al-faqih," he said, refering to accusations that Hezbollah wants to impose an Iranian-style regime in Lebanon.
 
"The Lebanon wilayat al-faqih means the Lebanon of diveristy and pluralism ... we shoud preserve it as such."

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