CAIRO (AFP) - Egypt's President Mohamed Morsi said on Saturday his government was in touch with both Israelis and Palestinians and there were indications they could "soon" reach a truce, but there were no guarantees.

"There are some indications that there could be a ceasefire soon," Dr Morsi said at a joint news conference with Turkish Prime Minister Recep Tayyip Erdogan, adding that there were still "no guarantees." He said his country's government was in "vigorous" communications with both the Palestinians and Israel.

A senior Hamas official had earlier told AFP his movement was reluctant to agree a truce because it doubted the terms of the ceasefire could be guaranteed.

The Palestinian Information Centre, a website close to Hamas and acts as a mouthpiece, reported that Meshaal demanded "international guarantees" in his meeting with Egypt's intelligence chief.

One of his demands was that Israel lift the blockade it imposed on Gaza after the Islamist movement seized the enclave in 2007.

Hamas had made a similar demand to agree a ceasefire after its December 2008-January 2009 war with Israel, but the restrictions have remained largely in place.