Jama'a al-Islamiya on Monday demanded the release of its spiritual leader imprisoned in the US, Sheikh Omar Abdel Rahman, in return for Egypt freeing American-Israeli national Ilan Grapel, who is accused of spying for Israel.
"If the ruling military council intends to release the Israeli spy, it has to make a deal with the United States,” Nageh Ibrahim, a senior member at the group, said during a press conference outside the American Embassy in Cairo.
He stressed that Abdel Rahman has to be freed from prison in the US in return.
Egyptian authorities detained Grapel on 12 June and accused him of spying for Israel's spy service during the revolution. Israel has denied the claims.
Washington has been calling for Grapel's release and US Defense Secretary Leon Panetta is expected to raise the issue during his visit to Cairo on Tuesday.
On Monday, Egypt's state-run television said Cairo is considering the American request to release the alleged spy.
Israeli press reports, meanwhile, have said that Tel Aviv agreed to free a number of Egyptian prisoners in return for Grapel.
Over the past months, the American Embassy has witnessed several protests demanding the release of Abdel Rahman, who is serving a life sentence for his involvement in plotting the 1993 World Trade Center bombings.