Jerusalem (PTI): In a development that could end the long cycle of violence in the region, all the Palestinian militant factions have agreed to an Egypt-mediated ceasefire with Israel, "starting in the Gaza strip".

"All the Palestinian factions have agreed to the Egyptian proposal on a truce with Israel," Egyptian state news agency, MENA said citing an unnamed high level Egyptian official.

The Egyptian proposal included a "comprehensive, reciprocal and simultaneous truce, implemented in a graduated framework, starting in the Gaza Strip and then subsequently moving to the West Bank, the official said.

"This proposal is a phase of a broader plan that aims to provide an appropriate atmosphere before lifting the blockade and ending the state of Palestinian division," the agency quoted him as saying.

The factions agreed the ceasefire would begin in the Gaza Strip and extend to the West Bank at "some point in the future", the agency said.

The agreement was reached after lengthy discussions in Cairo over two days under Egyptian intelligence chief Omar Suleiman's mediation.

Suleiman is expected to come to Israel to discuss about the ceasefire proposal with the senior leadership.

Last week, senior Hamas leader had put a condition saying his faction was willing to accept the Egypt-mediated ceasefire provided Israel lifted the blockade over Gaza strip.

Israeli blockade of Gaza strip since June 2007 only allows limited basic supplies into the region.