Palestinians salvage belongings from the rubble of their home, following Israeli air strikes in Gaza City, on August 7, 2022. Photo: AFP

Israel agreed on an Egyptian-proposed humanitarian cease-fire with Gaza that would take effect at 10 pm (19:00 GMT) on Sunday, an Egyptian security source reportedly said.

Cairo is still seeking a response from the Palestinian Islamist Jihad (PIJ), a Gaza-based militant group that has been exchanging fire with Israel since Friday afternoon.

Israel's Channel 13 news, citing an anonymous Palestinian source, reported that Israel agreed on an Egyptian-proposed humanitarian cease-fire, while the offer was refused by the PIJ.

Israel's Channel 12 news also reported that an Israeli official has confirmed "contacts" over a full ceasefire, also being mediated by Egypt.

Israeli sources tell Israel's Walla news site that Israel is worried that a deterioration in the humanitarian situation in the Gaza Strip could lead to the Islamic Resistance Movement (Hamas) joining the fighting. So far, the group, which rules the coastal enclave, has not been involved in the conflicts.

The tension between Israel and the PIJ militants has been flaring for the third day since Friday afternoon. According to the ­Palestinian Health Ministry in Gaza, 31 Palestinians were killed and over 275 injured.

Meanwhile, at least five people, including four children, were killed and 15 others injured on Saturday night by an explosion in the refugee camp of Jabaliya in northern Gaza, according to Palestinian sources.

Israel denied being responsible for the explosion, saying that a rocket misfired by the PIJ militants caused "the tragic killing of the children" in Jabaliya. 

Israeli Prime Minister Yair Lapid said earler on Sunday the military offensive in Gaza will continue "as long as necessary."

In a joint statement with Defense Minister Benny Gantz, Lapid said the military had struck "targets and operatives and to thwart rocket-launching squads" belonging to the Palestinian Islamic Jihad.

For his part, Gantz warned that Israeli forces "will continue to operate against the Islamic Jihad until we restore peace and remove the threats to the children living in the area adjacent to the Gaza Strip."

The fighting began on Friday afternoon when the Israeli air force killed a senior Palestinian Islamic Jihad commander in the coastal Palestinian enclave, triggering rocket fire by militants with the group. The escalation came ­after Israel arrested a leader of the group in the occupied West Bank, sparking threats of revenge.