Over two years of Egyptian mediation efforts have so far failed.

Both groups have failed to seal a unity deal despite lengthy Egyptian mediation.

Qatar has tolerated Egyptian mediation but has pushed for more representation for Hamas.

An official involved in the Egyptian mediation confirmed both sides were ready to stop.

But he denied Israeli and Palestinian media reports that Egyptian mediation was already under way.

The statement accused Israel, mounting an offensive in Gaza, of bad faith in an Egyptian mediation effort to end the crisis.

Palestinian militant groups are considering a possible ceasefire with Israel in an Egyptian mediation bid to salvage a US-backed peace plan.

A shaky new truce was in place thanks to Egyptian mediation, he noted, when Jaabari ventured out fatally onto Gaza's streets.

An Arab diplomat familiar with Egyptian mediation between Israel and the Palestinians said Cairo, echoing Washington, expected the Netanyahu government to tread carefully.

Hamas seized Gaza from Fatah forces in a brief Palestinian civil war in 2007 and previous Egyptian mediation efforts to reconcile the rivals fell short.

Their mutual hostility has split the Palestinian independence movement to its foundations and despite a year of Egyptian mediation there is no sign of reconciliation.