Negotiations between Israeli and Palestinian officials to reach a comprehensive and lasting ceasefire agreement were set to resume Tuesday in Cairo, as a 72-hour truce was holding for a second day in Gaza.

The two sides held indirect talks for nearly ten hours on Monday. The Israeli team was set to return to Cairo later Tuesday, after having briefed Prime Minister Benjamin Netanyahu.

A senior Israeli government official denied reports that headway had been made at the Egyptian-brokered talks, telling Israel Radio and Channel 2 television that the gaps were wide and “no progress” had been made.

Public radio reported that Israel has offered concessions that include: extending fishing zones in the waters off Gaza; narrowing a no-go security zone along the border; and allowing some 170 Palestinians a day to pass into Israeli territory through the Erez crossing for travel to the West Bank or Jordan.

Israel would also no longer bloc the transfer of money to some 40,000 civil servants hired by Hamas in Gaza, so long as the money is internationally supervised and handled by moderate Palestinian President Mahmoud Abbas rather than Hamas.

Building materials entering the Strip would also have to be supervised so that Hamas does not use them to repair the network of tunnels it dug under the Gaza-Israel border, public radio reported.

Israel has ruled out Hamas demands for a seaport and airport in Gaza.

With two days left in the temporary truce, Israeli media speculated it may have to be extended for several more days in order to reach a long-term deal to end four weeks of intense fighting in Gaza.

Netanyahu’s security cabinet was scheduled to convene late Tuesday to discuss the Cairo talks.

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