Separately, Al Jazeera reported that Egypt is set to formally announce the cease-fire agreement, also saying, citing unidentified sources, it would start 8pm and will include Israeli concessions to alleviate the Gaza Strip's fuel shortage.

AFP also reported that Israel has agreed to a truce in Gaza, citing an Egyptian security source. "The Israeli side has accepted," AFP quoted the source as saying. 

The source added that Cairo was waiting for the Palestinian response, as part of Egyptian mediation efforts three days into renewed conflict in the Gaza Strip.

Egypt said it was commited to following up on prisoners, Al-Saadi and Awawda, as part of the ceasefire.

Within this context, Israel said it will allow an easing of the blockade and the introduction of fuel trucks to the power station tomorrow, on Monday.

Since the conflict began on Friday, 31 Palestinians -- including six children -- have been killed, while 275 people have been wounded, said health authorities in Gaza where several buildings were reduced to rubble and militants fired their first rockets at Jerusalem.

The fighting is the worst in Gaza since an 11-day war last year devastated the impoverished coastal territory, home to about 2.3 million Palestinians, and forced Israelis to seek shelter from rockets.

Egypt, a historic broker between Israel and armed groups in Gaza, negotiated the ceasefire that ended an 11-day conflict in May of last year.