June 25 (Bloomberg) -- Abducted British Broadcasting Corp. reporter Alan Johnston appeared in a video wearing an explosive- packed vest and warned that his kidnappers in the Gaza Strip would detonate the bomb should an effort be made to rescue him.

``I've been dressed in what is an explosive belt, which the kidnappers say will be detonated if there's any attempt to storm this area,'' Johnston said in the 1-minute, 42-second tape.

The Palestinian Hamas movement has demanded that Johnston, who was seized in Gaza three months ago by a group calling itself the Army of Islam, be freed by today. The kidnappers seek in return the release of Palestinian-born Islamic cleric Abu Qatada, who is being held in the U.K., the BBC said.

``We will not allow the abductors of Alan Johnston to continue holding him, and all options are open,'' Hamas's spokesman in Gaza, Sami Abu Zuhri, told reporters. ``Releasing the tape of the journalist in this way is unacceptable and shameful.'' The U.K. Foreign Office condemned the tape.

Hamas, classified as a terrorist organization by the U.S. and Israel, seized control of Gaza this month from the Fatah movement of Palestinian Authority President Mahmoud Abbas. Hamas and Fatah, which now operates only in the West Bank, are competing for control of the Palestinian Authority government.

Hamas leader Ismail Haniya said in a speech to supporters in Gaza yesterday that ``the issue of Alan Johnston must end.''

`Negotiations Ruined'

``Captors tell me that very promising negotiations were ruined when the Hamas movement and the British government decided to press for a military solution to this kidnapping,'' said Johnston, 45. He wore a long-sleeve pullover in the video.

``I do appeal to the Hamas movement and the British government not, not to resort to the tactics of force in an effort to end this,'' Johnston said. ``It seems the answer is to return to negotiations, which I'm told are very close to achieving a deal.''

Johnston, from Scotland, was the only Western reporter permanently based in Gaza. The BBC appealed for his release.

``It is very distressing for Alan's family and colleagues to see him being threatened in this way,'' the broadcaster said in a statement on its Web site. ``We ask those holding Alan to avoid him being harmed by releasing him immediately.''

The Army of Islam is also one of the groups involved in the abduction of Israeli soldier Gilad Shalit, who has been held for a year. Hamas said it will release an audio tape of Shalit today, the Palestinian Maan news agency reported.

Shalit is alive and healthy, Abu Mujahed, a spokesman for the Popular Resistance Committees, also involved in Shalit's capture along with Hamas, told reporters in Gaza today.

Captors' Demands

Abu Mujahed said the captors want female, young, old and sick Palestinians imprisoned by Israel freed in return for Shalit's release. They also want leaders of their groups released along with Palestinians serving long sentences, he added.

Shalit's kidnapping on June 25, 2006, sparked an Israeli assault on Gaza, where he is believed to be held, that lasted until a cease-fire five months later. Abu Mujahed warned that if Israel did not meet the captors' demands, Shalit could be held for years.

To contact the reporters on this story: Michael Heath in Sydney at mheath1@bloomberg.net; Gwen Ackerman in Jerusalem at gackerman@bloomberg.net.

Last Updated: June 25, 2007 07:40 EDT