U.S. Defense Secretary Leon Panetta is meeting with leaders in Egypt Tuesday to discuss the country's transition to a civilian government and the possible release of an alleged Israeli spy.

The talks in the capital, Cairo, come a day after Panetta met with Israeli and Palestinian leaders.

During a news conference Monday in Tel Aviv, the defense chief said he could not comment on the specifics of the case of Ilan Grapel, a dual U.S.-Israeli citizen who has been in Egyptian custody since June. Egypt accuses Grapel of working for Israel's Mossad spy agency, which Israel denies.

Panetta said the U.S. has conveyed its concerns about Grapel to Egypt, and that it hopes he will be released.

Tensions between Egypt and Israel have been rising since the February overthrow of former Egyptian president Hosni Mubarak.

In August, Egypt accused Israeli forces of shooting dead five Egyptian security guards during gun battles with Palestinian militants. Israel said the militants had earlier ambushed and killed eight Israelis.

Egyptian protesters angered by the killing stormed the Israeli embassy in Cairo last month.

The two countries signed a peace treaty in 1979.

Panetta will next fly to Brussels for a meeting of NATO defense chiefs.