Israeli Defence Minister Ehud Barak spoke on the telephone late Saturday with Egyptian Defence Minister Field Marshal Muhammad Hossein Tantawi, who heads the Armed Forces Supreme Council of top generals now running the country.
A Defence Ministry spokeswoman in Tel Aviv confirmed the conversation, but would give no details.
After Egyptian president Hosny Mubarak stepped down on Friday following 18 days of nationwide protests, the military had announced that the Armed Forces Supreme Council was 'committed to all Egypt's international treaties.'
Reacting Sunday, Netanyahu told his cabinet: 'The Government of Israel welcomes the Egyptian military statement that Egypt will continue to honour its peace agreement with Israel.'
The premier called the agreement 'the cornerstone of peace and stability,' not only for two neighbours, but for the entire Middle East.
Mubarak's resignation featured high in Sunday's Israeli newspapers, the first published since Friday, because Saturday is the country's day of rest.
'The Hope and the Fear,' said a headline in Israel Hayom, the largest circulation daily, reflecting the ambivalence among Israelis, many of whom identify with the calls for democracy, but are first and foremost anxious about the consequences of a regime change for their country.
Yediot Ahronot's front-page was covered by one large photograph of Egypt's youngest generation participating in the celebrations and waving flags. 'A new Egypt,' said the headline.
Israel had watched the 18 days of anti-government protests in the regional superpower closely, fearing a sudden change of government could upset regional stability and jeopardize the peace with Egypt, after three-decades of cooperative relations with Mubarak.
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