Israel signaled willingness to scale back military operations in the Gaza Strip and the West Bank ahead of cease-fire talks involving Egyptian mediators, the Palestinian prime minister and militant groups.
A truce would be a key to restarting the frozen US-backed "road map" peace plan, which envisions a Palestinian state in 2005. Talks stalled several months ago because of violence and Palestinian political turmoil.
Egyptian intelligence officials and Palestinian Prime Minister Ahmed Qureia have scheduled separate talks today with the leaders of the militant groups, including Hamas and Islamic Jihad.
Egyptian officials said they also would meet with Palestinian security branches. Next week, leaders of the militant groups are to meet with Egyptian mediators in Cairo.
Mr Qureia, who took office last week, said his first priority is to get the militants to agree to a truce, then bring Israel into the accord.
Israel showed signs of softening its position, in part because Israeli Prime Minister Ariel Sharon is under growing pressure at home and abroad to end the deadlock.
In the past, Israel refused to consider a truce until Palestinian security forces begin dismantling armed groups a requirement of the road map. Palestinian leaders have balked, saying they will not use force against the militants for fear of triggering internal fighting.