LA VALETTA (MALTA), October 29 (RIA Novosti) - The Russian-crewed and Maltese-flagged vessel at the center of a mysterious hijacking case has approached Maltese territorial waters, where negotiations on its handover are due to begin, Maltese maritime authorities said Thursday.

"In the early hours of Thursday, the Arctic Sea arrived in the area of Malta's territorial waters," a source said. The maritime authorities earlier said the Arctic Sea would be handed over before entering Malta's territorial waters.

A source in the Russian embassy in Malta told RIA Novosti on the phone: "The vessel has approached the territorial waters, and Maltese coast guard inspectors are getting ready to arrive at the ship."

The vessel disappeared in the Atlantic on July 24 while carrying a $2 million shipment of timber from Finland to Algeria and was intercepted off West Africa on August 17, when eight suspected hijackers were arrested.

The disappearance, which triggered a major international search effort, raised suspicions about a "secret cargo" of drugs or weapons carried by the ship. Russian authorities have denied the rumors, saying the vessel was hijacked by criminals who demanded a ransom.

Eleven of the 15 Russian crewmen have since been sent home. They were reportedly held for several weeks at an undisclosed location for questioning by Russian authorities and were subsequently released after being sworn to secrecy.

The captain and three crew members are still on board, along with Russian investigators.