JERUSALEM (Reuters) -- Israel has agreed to a truce in the Gaza Strip, but will not lift its blockade of the territory, Israeli sources said, declining to give further details of any deal.

Shortly before, a Palestinian official with knowledge of Egyptian mediation between the two sides told Reuters that there was a ceasefire agreement to end eight days of fighting in Gaza.

Israel's Channel Two television said a ceasefire would be announced in Cairo later in the evening by US Secretary of State Hillary Clinton.