U.S. Defense Secretary Leon Panetta has urged Egypt's ruling military council to lift emergency law and push forward with a transition to a civilian government.

Panetta said Tuesday after meeting with the council's chief, Field Marshal Hussein Tantawi, that Egyptian leaders told him they are looking to end emergency rule as soon as possible. He said the officials also agreed the move is important if Egypt is going to have free and fair elections.

The military leaders have previously promised to lift emergency law, but have not said when that will happen.

The country is set to hold parliamentary elections in late November. U.S. Ambassador to Egypt Anne Patterson said Tuesday at a news conference with Panetta that she did not think even the military leaders know when the council will turn over power to a civilian government.

The wide-ranging talks Tuesday also covered regional issues, including a recent cross-border attack between Egypt and Israel that sparked a diplomatic dispute between the two countries.

Panetta said he urged Egyptian authorities to release Ilan Grapel, an alleged spy for Israel who is being held in Egypt.

Grapel is a dual U.S.-Israeli citizen. Egyptian authorities detained him in June on charges of working for Israel's Mossad spy agency, a charge Israel denies.

Panetta traveled to Cairo from Tel Aviv, and from Egypt flew to Brussels for a meeting of NATO defense chiefs.