Hizbullah leader Hassan Nasrallah on Wednesday extended a conciliatory hand to the rival pro-government camp and declared support for placing the Israeli-occupied Shebaa Farms area under U.N. custody.

Nasrallah also confirmed that a prisoner swap between Hizbullah and Israel would take place in the next two weeks.

"We are open to all factions with the aim of overcoming tensions of the previous era," Nasrallah told a news conference held by videolink.

"We insist on overcoming the past, healing wounds and opening gates," he added.

Nasrallah said he did not believe "any faction has a decision to spark trouble."

Turning to the Shebaa Farms issue, Nasrallah said he backs attempts to free the area through diplomatic means.

"We support efforts to liberate Shebaa Farms through negotiations," Hizbullah's secretary general declared.

"If Israel ever withdrew from Shebaa Farms it would be because Hizbullah has weapons," he said.

But even after an Israeli withdrawal from Shebaa Farms, according to Nasrallah, it "would not be a complete liberation because the territory would not be under Lebanese sovereignty."

On the prisoner exchange accord, Nasrallah said: "I, hereby, declare our acceptance of the swap deal and the issue is closed."

"We will respect the steps which are to be taken, God willing," Nasrallah added, refusing to set a date for the prisoner exchange.

"July 15 is the most probable, a bit before or a bit after," he said. "If I set a date the Israelis will only change it."

The Israeli cabinet on Sunday gave the okay for a deal under which Israel would release five Lebanese prisoners and the remains of Hizbullah members in exchange for the bodies of soldiers Ehud Goldwasser and Eldad Regev.

They were captured, badly wounded, by Hizbullah in a deadly cross-border raid on July 12, 2006 which triggered a devastating 34-day war in Lebanon. Olmert said the two were dead.

Nasrallah uncovered that the mediation in the prisoner swap, which began more than a year ago, was sponsored by the United Nations and not Germany.

He said U.N. Chief Ban Ki-moon assigned a German citizen to carry out the mediation on behalf of the international organization.

The Hizbullah chief said the principles include swapping all Lebanese prisoners and the bodies of all the Arab and Lebanese martyrs.

He said four Iranian diplomats who disappeared in Lebanon and believed handed over to Israel by the Lebanese Forces are also to be released under the deal.

Nasrallah said the Israelis accepted to release Lebanese prisoners except Samir Qantar and rejected the principle of releasing Arab prisoners.

He said the Israelis only recently accepted to release Qantar.

Commenting on Britain's move to ban the military wing of Hizbullah and add it to its list of designated terrorist groups, Nasrallah said he was not surprised by the decision, but believed that the timing was rather "suspicious."

"This means that it will be a criminal offence to belong to, fundraise and encourage support for the military wing of the organization," junior Home Office minister Tony McNulty said in a statement.

Nasrallah labeled Britain's decision "an honor and a medal for us," adding that London is "one of the founders of the Zionist entity … and the permanent sponsor of the Zionist enemy."