Officials for both Mr Mubarak and Mr Olmert said the two leaders would meet at the Egyptian Red Sea resort of Sharm el-Sheikh on Sunday, June 4, for their first talks since the Israeli premier won a March 28 general election.
"President Mubarak will hold important talks with the Israeli prime minister next week in the first meeting between them after (Olmert) won the elections and the formation of his government," said Egyptian presidential spokesman Suleiman Awad without giving a specific date for the meeting.
"The talks will focus on the situation on the Palestinian and Israeli fronts and ways in which to push forward the peace efforts in preparation for a three-way summit to be attended by president Mahmud Abbas," Mr Awad said.
A spokesman in the Israeli prime minister's office confirmed that "Mr Olmert will meet President Mubarak at Sharm el-Sheikh next Sunday."
Summit venue
Egypt's Red Sea resort was the venue last year for a Middle East summit hosted by Mr Mubarak that was also attended by Palestinian Authority president Mr Abbas and then Israeli premier Ariel Sharon.
That summit, the first time that the top Israeli and Palestinian leaders had met for more than five years, produced a joint declaration of an end to hostilities, as well as agreements on issues such as the transfer of security control in parts of the West Bank and the release of Palestinian prisoners.
However relations between the two sides have since plummeted and Israel has frozen all contact with the Palestinian Authority since the radical Islamist group Hamas won a January parliamentary election and went on to form its first government in March.
Egypt, one of only two Arab states along with Jordan to have a peace treaty with Israel, has been playing an increasingly high-profile mediating role in the Israel-Palestinian conflict.
It played host to the first high-level contacts between the two sides in months last weekend when Abbas met Israeli Foreign Minister Tzipi Livni and Deputy Prime Minister Shimon Peres on the sidelines of the World Economic Forum (WEF) in Sharm el-Sheikh.
Mr Olmert himself pledged during talks at the White House with US President George W. Bush last Tuesday that he would meet Abbas shortly as part of an effort to reach a negotiated settlement.
The prime minister wants to fix the borders of the Israeli state during his four-year term of office and has threatened to do so unilaterally if he feels that agreement with the Palestinians is impossible.
Although peace negotiations are within the remit of Mr Abbas rather than the Hamas-led government, Mr Olmert has said that the moderate Palestinian Authority president cannot be used as a fig leaf for a movement which is committed to the destruction of the Jewish state and refuses to renounce violence.