Israel said yesterday it accepted an Egyptian-brokered truce with Hamas Islamists ruling the Gaza Strip but voiced skepticism the ceasefire involving all Palestinian militant groups in the territory would hold.

Amos Gilad, a senior Israeli defence official, said after returning from talks in Cairo that "an understanding" had been reached. Egypt and Hamas said on Tuesday a ceasefire would go into effect at 0300 GMT today.

Gilad told Israeli media that Israel was prepared to give a ceasefire a chance - while continuing preparations for possible military action should it fall apart.