All groups in Gaza, including Hamas, would now accept a cease-fire deal with Israel which would include releasing Gilad Shalit, according to the Palestinian Agriculture Minister, who also heads the coordinating committee of Palestinian organizations there.

Ibrahim Al-Naja said the factions were ready to stop the Qassam rocket fire if Israel's ceased all military moves against the Palestinian factions in Gaza. They are also ready to release Shalit in exchange for guaranteeing the future release of Palestinian prisoners.

Hamas leaders did not confirm this report on Monday, but if it is true, then this is the first time that Hamas has indicated its acceptance of the Egyptian proposal to solve the crisis.

Egypt's proposal did not include an Israeli commitment to the immediate release of Palestinian prisoners, only guarantees for their future release.

Al-Naja said the Palestinian faction's conditions were that the cease-fire would be mutual and Israel would stop all its actions against the Palestinians.

He also said Israel must provide clear guarantees to free veteran prisoners, minors and female prisoners incarcerated in Israel.

"This initiative was presented in an attempt to alleviate Palestinian suffering, but now it depends on Israel, which is showing no indication yet of its willingness for a cease-fire," he said.

PA chairman Mahmoud Abbas will present the understandings among the Palestinian factions to U.S. Secretary of State Condoleezza Rice at their meeting on Tuesday, Palestinian sources said.