After earlier signs of progress, the outlook appeared to dim as Prime Minister Benjamin Netanyahu vowed to resist international pressure to halt the war.
Efforts aimed at securing an elusive truce in exchange for hostages held in Gaza were due to resume Monday as disagreement between Israel and Hamas over demands to end the seven-month war intensified.
For months, negotiations aimed at achieving a cease-fire and a release of hostages have made little progress, but signs the two sides were coming closer to an agreement appeared over the past week.
The Egyptian proposal consists of three stages, aimed at exchanging Israeli hostages for Palestinian prisoners, taking necessary measures to reach a ceasefire, and restoring sustainable calm.