The Palestinian peace talk delegation in the Egyptian capital, Cairo, said Israel had not responded to Palestinian proposals before the expiry of the deadline at midnight local time (2100 UTC) on Tuesday.

Israel, on the other hand, laid the blame at the door of Hamas, saying the militant group had made further talks "impossible."

Chief Palestinian negotiator Azzam al-Ahmed said his delegation had shown great flexibility, but that Israel had failed to respond to its latest proposals. Ahmed claimed Israeli Prime Minister Benjamin Netanyahu had shown "a lack of faith."

"All Israel's proposals ... were aimed at dividing the West Bank from Gaza," Ahmed said.

Israeli spokesman Mark Regev responded, saying that Israel had withdrawn its negotiation team because Hamas had violated the truce with rocket attacks. The violence ended a 10-day period of relative calm, with the ceasefire having been extended by a day.

"The Cairo process was built on a total and complete cessation of all hostilities and so when rockets were fired from Gaza, not only was it a clear violation of the ceasefire but it also destroyed the premise upon which the talks were based," said Regev.

Israel resumed air strikes across the Gaza Strip following the rocket attacks. Hamas, meanwhile, claimed to have fired at least 40 rockets at Israel, while Israeli media reported at least 30.

Wife and child of leader killed

One of the Israeli airstrikes was said to have killed the wife and infant daughter of Hamas' elusive military chief Mohammed Deif, a senior member of the Islamist group said on his Facebook page on Wednesday.

"The wife of the great leader was martyred with his daughter," in a strike Tuesday night, wrote exiled Hamas deputy leader Mussa Abu Marzuk, while saying nothing about the fate of Deif himself.

Palestinian health officials said three people, including a woman and a two-year-old girl, had died in a strike on a house in Gaza City. The third victim was not identified.

Key sticking points to an agreement in the Cairo talks have been Hamas' demands to build a seaport and an airport. Israel - which wants the disarming of all militant groups in Gaza - has said this might be discussed, but only at a later stage.

Since July 8, the fighting between Israel and Hamas began has cost the lives of at least 2,020 Palestinians, with 67 fatalities on the Israeli side.

rc/se (AP, APF, dpa, Reuters)