Palestinian groups in Gaza have agreed on a new ceasefire after days of deadly clashes with Israel, a senior official of the radical Islamic Jihad movement has said.

Nasiz Assam said the truce would come into effect at midnight on Friday.

'Egyptian officials have made great efforts to restore the ceasefire' brokered by Cairo at the weekend following earlier clashes in the wake of an ambush in southern Israel, he said.

A spokesman for the Islamist Hamas government in Gaza confirmed the ceasefire accord, saying it followed contacts with the Egyptians and in the United Nations.

'The Hamas government calls on all factions of the Palestinian resistance to give the Israeli occupier a last chance to stop its aggression,' Hamas official Salah al-Bardawil said in a statement.

The announcement of a new truce came after 11 Palestinians were killed in seven Israeli air strikes in less than 48 hours.

The spike in violence was kicked off by an air strike on the southern city of Rafah early Wednesday that killed Islamic Jihad militant Ismail al-Ismar, and provoked a flurry of retaliatory rocket attacks and counter-strikes.

The victims included two other Islamic Jihad activists.

Israel said the attacks were in response to the 19 rockets and mortars fired into southern Israel yesterday.

There were no injuries in the rocket attacks

Israeli Intelligence Minister Dan Meridor said the Jewish state was ready to respect the ceasefire as long as there was calm along the border with Gaza.