Barghouti is serving five life sentences for the murder of Israeli citizens.
Barghouti's wife, Fadwa, said in an interview with an Arab newspaper on Sunday that her husband would be released from jail as part of a deal that would include the release of kidnapped IDF soldier Gilad Shalit.
She added that the clashes between Fatah and Hamas caused her husband "great pain".
The London-based al-Hayat newspaper recently reported that Palestinian President Mahmoud Abbas demanded during the Sharm el-Sheik summit that Prime Minister Ehud Olmert release Barghouti as part of the planned prisoner release.
According to reports from sources involved in the prisoner release talks, Abbas hopes that Barghouti's release would restore Fatah's popularity among the Palestinian public and strengthen his status in the West Bank.
Although he has been sentenced for life, Barghouti is still considered one of the Fatah's leaders, even inside jail. Only recently, after Hamas took over Gaza, he condemned the organization's "military coup" and expressed support of the new government established in Ramallah.
In a statement issued by Barghouti, he called on Abbas to fire the heads of the security organizations and appoint new people with the ability to make a reform in the organizations from a professional aspect. He also urged Ismail Haniyeh to resign as prime minister of the Hamas-led government.