Meanwhile, Israeli Prime Minister Ehud Olmert and his top ministers are discussing whether to agree to a cease-fire plan, or expand the Israeli offensive in Gaza.

The meeting of the "Security Cabinet" comes a day after France and Egypt sketched a proposal to stop the fighting.

The initiative was spurred on by an Israeli mortar strike near a United Nations school that the UN said killed 40 Palestinians.

The US has endorsed the proposal.

In Ramallah, Hamas Palestinian Legislative Council member Ayman Daragmeh expressed hope for a breakthrough.

"I hope that this initiative by Egypt and the French will be accepted by the Israeli side first, because it is they who started the war. It is their aggression in Gaza and I think we are ready to discuss and to make a decision regarding any positive initiative."

However, Israel's former ambassador to the UN,Dori Gold said that diplomats should first persuade the Arab world to get Hamas to halt rocket attacks against Israel.

"There are many international visitors now coming to Israel, who are trying to offer their good services to bring about some kind of conclusion of this conflict. To the extent that these visitors are able to persuade the Arab world to get Hamas to halt rocket attacks against Israel, then I think we can have progress with their diplomatic efforts. To the extent that we have no definite results in that area, unfortunately, Israel will have to unilaterally proceed in its own manner."