Israeli cabinet considers Hamas hostages deal

ISRAEL and the Hamas militant group last night appeared close to a temporary ceasefire deal that could bring the first pause in fighting in a devastating six-week war and result in the release of dozens of hostages held captive in the Gaza Strip.

Hamas predicted a Qatari-mediated deal could be reached in "the coming hours, while Israeli Prime Minister Benjamin Netanyahu was set to convene top decision-makers to discuss the matter.

"We are advancing," Mr Netanyahu told troops during a visit to a training base. "I hope there will be good news soon."

The announcement came as Israeli troops battled Palestinian militants in an urban refugee camp in northern Gaza and around hospitals overcrowded with patients and sheltering families.