BBC: Israel has rejected a call for a ceasefire

"Israel has rejected a call by the head of the Hamas-led Palestinian government for a ceasefire to end several days of fierce fighting in the Gaza Strip.
Ismail Haniya had said the only way out of the current crisis was for all parties to restore calm through a mutual cessation of hostilities.

Officials in the Israeli PM's office said there would be no truce until a captured Israeli soldier was free.

Earlier Israel said its troops had left their positions in northern Gaza.

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Officials in Israeli Prime Minister Ehud Olmert's office said he would not agree to a truce unless Hamas first released Cpl Shalit.




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"We do not hold negotiations with terrorists," an unnamed official told AFP news agency.

"They must first return the kidnapped soldier unharmed and cease their fire.

"We will decide on our next moves according to the steps taken by the Palestinian government."

Mr Haniya said he was still committed to the proposal despite the rejection.

"We presented it out of conviction... and we hope the leaders of the occupation will show reason and logic," he said, quoted by AFP.

His Hamas-led government has also urged Israel to open negotiations over the fate of Cpl Shalit.

The Israeli army says all of the forces that entered northern Gaza late on Wednesday have left the town of Beit Lahiya and are now back in Israel.

The BBC's Wyre Davies in Gaza City says the withdrawal is significant, because the areas has been the scene of heavy fighting.

Our correspondent adds that it is not clear why Israel has decided to leave now, but that it should ease tensions.

This leaves Israeli forces in the southern Gaza strip, as well east of Gaza City. "

"Have mercy on us, O Lord, Son of David!" Matthew 20:30