The Israeli security cabinet will discuss a 60-day Lebanon ceasefire deal with Hezbollah on Tuesday.
The proposed truce would be for an initial period of 60 days and include the withdrawal of Israeli forces from Lebanon, according to media reports.
In return, Hezbollah would end its presence south of the Litani River, about 30km (18 miles) north of the international border, and be replaced by Lebanese Army troops.
Even as diplomats suggested on Monday that a deal was close, fierce fighting continued, with Lebanese authorities reporting at least 31 killed in Israeli air strikes and Hezbollah firing barrages of rockets at Israel.
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