Hamas is set to reject Egypt's proposals to end Israel's 17-day-old offensive in the Gaza Strip, Lebanese political sources close to the group have said.

The sources said Hamas negotiators, who returned to Cairo on Monday night after consulting their leaders in Damascus, would relay Hamas's negative response in talks with Egypt's intelligence chief Omar Suleiman.

One senior source said the group was opposed to three key elements in the proposal, worked on by Egypt and international diplomats in recent days.

The source said: "Hamas opposes a long-term truce - the Egyptians speak of 15 years -, it is opposed to any ceasefire being set without it being accompanied by immediate pullout of Israeli troops from newly occupied positions in Gaza, and the presence of foreign observers on the Rafah crossing point."

The source said Hamas wanted any truce to be short and for a specific period of time and for Israeli troops to start pulling out at the same time any ceasefire goes into effect.

The group was open to discussing the mechanism of opening the Gaza border with Egypt at Rafah but was not ready to accept international observers there.

Israel launched its offensive on December 27 with the declared aim of stopping Hamas firing rockets into southern Israeli towns and cities.

Hamas says more than 900 people have been killed and 4,000 wounded in the war so far. Israel says 10 soldiers and three civilians have died in the conflict.

Israel, backed by its Western allies, says any ceasefire must depend on Hamas halting rocket fire on Israel and wants measures to stop Hamas rearming via tunnels under the Egypt-Gaza border, in an area known as the Philadelphi corridor.

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