Egypt: Israel accepts Gaza truce terms

Ceasefire in Gaza? Israel has accepted the principle of a proposed truce in the Gaza Strip, a senior official from Egypt, which has been brokering the negotiations, told his country's official MENA news agency on Tuesday.

"Israeli leaders (have informed us) of their support for and understanding of the Egyptian proposals for a truce," the news agency quoted the official as saying without giving his name.

Egyptian Intelligence Chief Omar Suleiman - who has acted as go-between in the negotiations between Israel and Hamas - conveyed the news to a delegation from the Islamist group which controls Gaza earlier in the day, the news agency added.

In Jerusalem, the Israeli government spokesman neither confirmed nor denied the Egyptian report.

"As far as we are concerned, we can only indicate that contacts are continuing," said Mark Regev, spokesman for Prime Minister Ehud Olmert.

On Sunday, sources in the Gaza Strip told Ynet that as opposed to what had been the original outline of the truce negotiations between Hamas and the Egyptian mediators, the issue of kidnapped Israeli soldier Gilad Shalit is proving to be central to the talks.

Prime Minister Ehud Olmert and Defense Minister Ehud Barak have reportedly told Egyptian Intelligence Chief Omar Suleiman that Israel insists on including Shalit in any burgeoning ceasefire deal.