Cairo: Egypt has smashed a ring suspected of spying for Israel, reported a state-run newspaper on Sunday.

The group, composed of Egyptians and Palestinians, had been detected in the Sinai Peninsula bordering Israel, according to the report.

The main suspect, an Egyptian national, was arrested after security agencies had kept a watch on him for four months. The paper said that the suspect, the only member of the group to have been detained, has admitted to having provided the Mossad, Israel’s secret service, with unspecified military information.

“The [Egyptian] intelligence agency has taken charge of the case to track other members of the network,” added the paper.

The news came a day after Egyptian President Mohammad Mursi said that security cooperation with Israel is now “based on equality” and aimed at maintaining border security.

Egypt was the first Arab country to sign a peace treaty with Israel in 1979. Their relations deteriorated after a popular revolt toppled former Egyptian president Hosni Mubarak more than a year ago.

Mursi has voiced his commitment to the treaty despite his strong links with the Palestinian movement Hamas, which rules the Gaza Strip.