The US State Department is actively negotiating with Egyptian President Morsi's government about transferring Omar Abdel-Rahman from US custody to Egyptian custody.
Rahman, also known as "the Blind Sheikh," is currently serving a life sentence in the US for his role in the 1993 World Trade Center bombing. But Egypt is pushing for his release for "humanitarian and health" reasons.
The Department of Justice says the possibility of release is ruled out by the fact that Rahman is serving a life sentence. But an unnamed official within the Obama administration has said the custody exchange is being considered regardless.
Former federal prosecutor Andrew McCarthy believes the deal to release Rahman has already been reached by the administration, and they are just waiting until after the election to announce it. McCarthy believes this is why the DOJ so strongly ruled out Rahman's "release" but said nothing against his "transfer."
McCarthy was lead prosecutor in Rahman's case.