Palestinian negotiators were mulling over an Egyptian proposal to end the month-long Israel-Hamas war as the latest 72-hour ceasefire in the Gaza Strip was due to expire on midnight Wednesday.
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Since the truce went into effect Sunday, Israel has halted military operations in the coastal territory and Gaza militants have stopped firing rockets.
The ceasefire was meant to give the two sides time to negotiate a more sustainable truce and a road map for the coastal territory.
A member of the Palestinian delegation to Egyptian-brokered talks in Cairo said Wednesday that his team was considering an Egyptian proposal, which was tabled on Tuesday. Egyptian mediators have been were ferrying between the Palestinians and their Israeli counterparts in an attempt overcome the differences between the sides.
The Egyptian proposal calls for easing parts of the Israeli blockade of Gaza, bringing some relief to the territory, according to Palestinian officials in the talks. But it leaves the key areas of disagreement, including Hamas' demand for a full lifting of the blockade and Israeli calls for Hamas to disarm, to later negotiations.
'More cross-border freedom'
The Palestinian negotiator said he had some reservations about the proposal and would try to improve it.
"We would like to see more cross-border freedom, and also to have the question of a Gaza seaport and airport discussed," he said.
The Palestinian officials spoke on condition of anonymity because they were not authorized to discuss negotiations with the media. An Israeli government spokesman had no comment on the negotiations.
The war began on July 8 with Israel's air campaign against Gaza's Hamas rulers, whom Israel blamed for the kidnapping and murder in June of three Israeli teenagers in the West Bank. Nine days later, Israel sent in ground troops to destroy Hamas' underground cross-border tunnels constructed for attacks inside Israel.
The fighting has so far killed more than 1,900 Palestinians, the majority of them civilians, Palestinian and UN officials say. On the Israeli side, 67 people have died, all but three of them soldiers.
The latest outbreak of fighting is the third between Israel and Palestinian militants in Gaza since Hamas took over control of the densely-populated territory in 2007. Hamas has been consistently pushing for an end of an Israeli Gaza blockade, which Israel says is necessary to prevent the group from gaining access to weapons and munitions it deploys against Israelis.