Germany has approached Israel and Hizbullah with a ceasefire deal, the Kuwaiti newspaper Al-Rai Al-Aam reported.
Under the terms of the proposal, Hizbullah and Hamas would release the three captured IDF soldiers, and Israel would stop bombing Lebanon, withdraw from the Gaza Strip, and release the Hamas ministers arrested after Cpl. Gilad Shalit was kidnapped in June.
According to the paper, Israel Radio reported, Hizbullah rejected the terms and insisted that Israel release Hizbullah and Palestinian prisoners currently in custody. Furthermore, Hizbullah stipulated that a cessation of IDF attacks on Lebanese targets was a prerequisite for any future deal.
Israel's response was unknown.