Jan 6 - Israel has demanded that Hamas be prevented from rearming as a main condition for a ceasefire.
A senior Israeli official said French President Nicolas Sarkozy in partnership with Egypt was pursuing "a serious initiative" for a ceasefire.
Key to a new truce would be ending weapons smuggling along the Gaza-Egypt border, which israel says has allowed Hamas to rearm during previous ceasefires.
As the search for a ceasefire gathered pace, dozens more Palestinians were reported killed overnight and into Tuesday.
An Israeli airstrike killed three Palestinians who were among hundreds sheltering in a U.N. school in northern Gaza.
An Israeli tank shell killed three Israeli soldiers and wounded 24 other troops. The army said another soldier was killed overnight - also as a result of friendly fire.
Helen Long reports.
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