Unidentified sources told Ynetnews the declaration from the Israelis followed four rocket attacks into northern Gaza from the Palestinian territories.

Israeli officials said the attacks showed that talks would be futile, the sources said.

The sources said as long as Hamas ignored the three internationally prescribed conditions of recognizing Israel's sovereignty, renouncing terror and fulfilling the Palestinian Authority's obligations there would be no talks.

Hamas leader Mahmoud al-Zahar met with Egyptian intelligence officials to discuss the cease-fire and strategy, and later said, "The ball is in Israel's court now," Ynet reported.

The Israeli sources told Ynet the Hamas cease-fire didn't hold water, as it wasn't backed by agreements with other extremist organizations.

Egyptian intelligence chief Omar Suleiman was reportedly trying to arrange meetings with the various other Palestinian groups to get them to sign on to the Hamas cease-fire, the report said.