The new Palestinian leader, Mahmud Abbas, will enter into discussions with militant groups in the Gaza Strip next week about a possible ceasefire with Israel.
It is understood that Mr Abbas will travel to Gaza to re-launch dialogue with all Palestinian groups, in particular Hamas and Islamic Jihad with the aim of trying to reach a ceasefire.
Mr Abbas was sworn into office today following his victory in last Sunday's election.
In a speech at a ceremony in the West Bank town of Ramallah this morning, Mr Abbas called for a mutual ceasefire with Israel and talks with the Jewish state for a final peace deal.
Mr Abbas pledged to reach a peace agreement with Israel through negotiations and stressed his commitment to the Middle East roadmap.
He also condemned recent violence by Palestinian militants and Israel and dedicated his election to his predecessor, Yasser Arafat.
However, as the president was delivering his inaugural address, Israeli tanks were on the offensive in Gaza.
Israel said the incursion was in retaliation for a Palestinian suicide bomb attack two days ago in which six Israelis died. Eight Palestinians were killed in today's offensive.
Israel freezes contact
Earlier, Israel said it had decided to freeze contact with the Palestinian authorities over Thursday's deaths.
Palestinian officials have called on Israel to rethink the freeze, saying their new leader has not been given a fair chance.
But Israeli officials say the Palestinian leadership must decide if it wants peace or terror.
