Jerusalem: Abducted Israeli soldier Corporal Gilad Shalit, is holed up in an underground bunker, according to an Israeli newspaper report on Wednesday.

The Yedioth Ahronoth Daily reported that the 19 year old, who was abducted in a cross border raid from Gaza on June 25, is living with his seven captors off food hoarded in advance to save them from emerging.

Quoting Arab mediators, the Yedioth report says the militants have turned off their mobile phones to avoid detection by Israeli intelligence services and are communicating with the outside world using trusted "bosses" above ground.

Israel refused demands to free hundreds of jailed Palestinians in return for the soldier, instead sending troops and tanks into southern Gaza, believing that to be where he is being held.