Israeli and Palestinian negotiators were poised to resume indirect talks Sunday with Egyptian mediators on reaching a more permanent ceasefire before the current truce expires.
The Egyptian government persuaded both sides late Wednesday to adhere to a new five-day ceasefire, extending an earlier three-day agreement in order to allow more time to thrash out a longer-term truce.
It got off to a rocky start, with Palestinian rocket attacks and retaliatory Israeli air strikes, but Saturday marked a sixth day of quiet following more than a month of fighting that has killed at least 1,980 Palestinians and 67 on the Israeli side.
Israeli and Palestinian negotiating teams were expected back in Cairo for fresh talks, which the Palestinians said would begin on Sunday, after consulting their political leaders over the weekend.
The talks are expected to resume on the basis of an Egyptian proposal, seen by AFP, which calls for a lasting ceasefire beyond Monday midnight, and new talks on the thorniest issues, including demands for a seaport and airport in Gaza, to begin in a month's time.
Negotiations about handing over the remains of two Israeli soldiers in exchange for the release of Palestinian prisoners in Israeli jails would also be postponed, according to the document.
A buffer zone along Gaza's border with Israel would be gradually reduced and guarded by Palestinian Authority security teams.
The European Union welcomed the ceasefire in Gaza and said it was ready to expand a police mission in Rafah, on the border with Egypt, and train Palestinian Authority customs personnel and police for redeployment in Gaza.
It said EU police would monitor the transit of supplies needed for Gaza reconstruction and try to prevent weapons from being smuggled into the territory.
A mission of 70 European police officers was set up at the crossing point in 2005, tasked with monitoring movements of people, goods and vehicles at Gaza's only window to the outside world that bypasses Israel.
But it was suspended two years later after Hamas seized power in the Gaza Strip.
"A return to the status quo prior to the latest conflict is not an option," said the EU Council on Friday following a foreign ministers' meeting in Brussels.
The EU said a durable ceasefire must be accompanied by lifting closures on Gaza and called on "all terrorist groups" in the territory to disarm.
The Israeli foreign ministry welcomed the call for disarmament -- Israel's main demand at Cairo truce talks.
"Commitment to the principle of demilitarisation, to be implemented by an effective mechanism, will ensure a fundamental change of the situation," it said.
Israel, under pressure from citizens who have endured more than 2,790 rocket attacks since July 8, refuses to countenance any major reconstruction effort without full demilitarisation.
Thousands of Israeli supporters of peace talks with the Palestinian Authority to end the Gaza conflict demonstrated in Tel Aviv on Saturday.
The pro-peace protest was the largest in Israel since it launched operation Protective Edge on July 8.
It was organised by the opposition leftwing Meretz party, the communist Hadash party, and Peace Now, a group opposed to Jewish settlement building on occupied territory.
Meretz chief Zehava Galon called on Israeli Prime Minister Benjamin Netanyahu to resign. "He has failed, both for security and for peace -- he must go," she said.
Azzam al-Ahmad, who heads the Palestinian delegation at the Cairo talks, told AFP on Saturday he was quietly optimistic that an agreement for a longer-term truce could be reached.
"We have high hopes of reaching an agreement very soon, before the end of the truce, and perhaps even, very quickly, for a permanent ceasefire," he said.
But Hamas spokesman Sami Abu Zuhri struck a hardline note, insisting that there can be no return to peace without a lifting of Israel's eight-year blockade of the beleaguered coastal enclave.
The Israelis have spoken little in public about the negotiations.
With demands seemingly irreconcilable, the Egyptian mediators and both sides will be hard tasked to hammer out a wording that each can present as some kind of achievement.
Israel refuses to deal directly with Hamas although Hamas is part of the Palestinian delegation that also includes Islamic Jihad and the Palestinian Authority of president Mahmud Abbas.