Defence Minister Moshe Yaalon has denied reports that Israel is holding talks, direct or indirect, with Hamas on the future of Gaza.

Mr Yaalon said that the extent of Israel's current involvement was "allowing the Qataris to build infrastructure there, but they have no diplomatic role and there is no European intermediary either. A long-term truce is not being discussed between us and Hamas."

However, some form of engagement with Hamas is being openly mooted in Jerusalem.

This weekend, Education Minister and Jewish Home leader Naftali Bennett said in a TV interview that "the time has come for a change of policy on Gaza" and that Israel "should initiate an international process of rebuilding the strip on a civilian level in return for stopping Hamas rearmament".

Mr Bennett blamed Egypt and the PA for "wanting things in Gaza to be bad so we will always be fighting. For them it's convenient." He was echoing allegations by senior Israeli security officials who have accused the Egyptians and Hamas' rivals in the Fatah-dominated PA of blocking any serious rebuilding projects in Gaza for political reasons.