Afrasianet - Israeli Intelligence Minister Yisrael Katz on Wednesday denied a ceasefire had been reached after the worst armed flare-up between his country and militant groups in Gaza since a 2014 war.

"Israel does not want the situation to deteriorate, but those who started the violence must stop it," he told Israeli public radio, denying ceasefire claims by Hamas and Islamic Jihad.

"Israel will make (Hamas) pay for all fire against Israel."

Earlier, a senior member of Hamas said a ceasefire agreement had been reached with Israel.

Khalil al-Hayya, Hamas's deputy chief in Gaza, said in a statement that "a number of mediators intervened in the past hours and an agreement was reached to return to a ceasefire in Gaza," adding that the group was committed to it as long as Israel was.