Egyptian Gen. Omar Suleiman is expected to find out if groups aligned with Hamas are willing to go along with the deal that Haaretz said could go into effect within a few days.

Suleiman, the head of Egypt's intelligence services, will lay out Israel's stance to the Palestinians and then accept the Palestinian response.

"Both sides, Hamas and Israel, appear interested in the cease-fire," an Egyptian source told Haaretz.

The Jerusalem Post said that while Israel might be interested in a deal, it was somewhat skeptical that it will happen and has been keeping its forces in the area poised for possible action.

Meanwhile, Debakafiles reported that a key to the deal could be missing Israeli soldier Gilead Shalit. The Web site said Israel had offered to free 72 Hamas prisoners in exchange for Shalit. However, Hamas reportedly wants 250.