Contrary to earlier reports of Israel's agreement to an imminent ceasefire, the Cabinet has delayed the approval of French President Sarkozy's ceasefire initiative.

Nevertheless, the Prime Minister's Office issued a statement Wednesday afternoon, "Israel thanks Egyptian President Hosni Mubarak and French President Nicolas Sarkozy for their efforts to advance a solution for halting terrorist actions from Gaza and the smuggling of war material into the Gaza Strip from Egypt."

"Israel views as positive the dialogue between Egyptian and Israeli officials in order to advance these issues," the communiqué additionally stated.

According to government officials, Israel refuses to negotiate directly with Hamas.