Israeli and Palestinian negotiators have agreed to extend the current Gaza cease-fire by 24 hours, Gamal Shobky, the Palestinian Authority ambassador to Egypt, said Monday.

An Israeli government official confirmed the extension to CNN. The cease-fire is now set to expire at midnight Tuesday ( 5 p.m. ET).

The extension gives negotiators more time to talk about the issues for a lasting peace in Gaza.

"There hasn't been any progress at all," Azzam al-Ahmed, the lead Palestinian negotiator, told reporters.

Israeli and Palestinian media had reported Monday afternoon that a deal was set to be signed.

Israel's Channel 10, quoting Palestinian sources, said the agreement would include the easing of Gaza border restrictions and enlargement of the fishing zone off the Gaza coast.

Bigger issues -- including demilitarization, the building of a seaport, the release of Palestinian prisoners and the return of the bodies of two Israeli soldiers -- will be discussed at fresh talks in a month's time, Channel 10 said.

Palestinian news agency Ma'an reported that Egyptian consultants were drawing up the documents and that Israel's delegation had left Cairo to discuss the deal with Israel's Cabinet.

But talks will continue.

"We hope that every minute in the next 24 hours will be used so we can reach an agreement or the cycle of violence will continue," al-Ahmed said.

Mustafa Barghouti, leader of the Palestinian National Initiative, blamed the Israelis for blocking the path to an agreement. He said from Gaza after returning from Cairo that the Palestinian delegation was united.

He told CNN by phone that the situation is "very fragile and very explosive."

Communicating through Egyptian intermediaries, Israel and the Palestinians have been trying to resolve in days issues that have smoldered for decades.

Israeli Prime Minister Benjamin Netanyahu said earlier Monday that Israel was "prepared for any scenario," with the Israel Defense Forces ready "for a very firm action if fire is resumed."

Israeli forces remain positioned around Gaza. In recent weeks, they carried out aerial and ground assaults against Hamas to try to stop militant rocket fire and destroy a network of more than 30 tunnels that extended under the border into Israel.

(CNN)