Hizbullah has hailed the Israeli cabinet approval for a prisoner exchange as a victory and said the Jewish state's green light reflected the Shiite group's strength.

"What happened in the prisoners issue is a proof that the word of the resistance is the most faithful, strongest and supreme," the group's Al-Manar TV quoted Hizbullah's Executive Council chief Hashem Safieddine as saying.

"The world could not achieve the Israeli goal of recovering its soldiers without the resistance dictating its terms: the release of prisoners," he said during a ceremony in southern Lebanon.

Twenty-two of the 25 Israeli cabinet members voted in favor of the deal under which two soldiers captured in July 2006 -- or their remains -- are to be handed over in exchange for Samir Qantar, who is the dean of Lebanese prisoners, four Lebanese "fighters" and an undetermined number of Palestinians.

In the southern city of Sidon, meanwhile, members of the Popular Democratic Party were decorating the central Martyrs Square with pictures of Qantar and hanging banners such as "Freedom to the hero, prisoner Samir Kantar" and "freedom comes with blood not tears."

Israeli officials said the deal could take place as early as next week. The trade will likely take place in Germany.(AP-AFP-Naharnet)