Israeli Prime Minister Ehud Olmert on Monday denied a ceasefire agreement with Hamas, as reported in media, even though both Qassam fire from Hamas and strikes from Israeli army have subsided recently.

Some media reports said earlier that Israel reached sort of understanding on Gaza ceasefire with Hamas.

Speaking at a press conference following his meeting with visiting Czech Prime Minister Mirek Topolanek in Jerusalem, Olmert said that "There is no agreement and there are no direct or indirect talks (with Hamas)."

"The IDF (Israel Defense Forces) enjoys complete freedom of action, we have not dictated any ceasefire," Olmert stressed, adding that to the best of his knowledge "Egypt has no mandate to try and reach a truce agreement with Hamas."

But the Prime Minister still left a door open for a ceasefire on condition of an end of rocket attacks against Israeli communities and arms smuggling.

Earlier in the day, Israeli Defense Minister Ehud Barak also vowed to continue operation against Hamas in the Gaza Strip, despite a recent relative lull of clashes.

He said the operation "will continue and will at times increase and decrease."

Meanwhile, Hamas also denied the reports of ceasefire with Israel.

Hamas spokesman Sami Abu Zuhri said on Monday that no comprehensive ceasefire had been reached with Israel.

Some other Hamas officials disclosed that their leaders would talk to Egypt in the next one or two days to continue the efforts to work out such a deal.

Despite the denials from both sides regarding a truce, Israeli aircraft operations over Gaza have dramatically reduced in recent days and strikes on militants targets have been suspended.

IDF ground operations have also been reduced except for the routine operations along the Gaza border fence based on security estimates.

(Xinhua News Agency March 11, 2008)