Israeli television has reported that "all parties" have agreed to a ceasefire in Gaza as the day's death toll passes 100.
It said the timing of the truce has not yet been decided.
Reports of the ceasefire followed an intense day of bombardment in Gaza, which left dozens of people dead and knocked out the territory's only power plant.
Hamas has fired over 2,500 rockets at Israel, many have been intercepted The Israeli military said it had targeted over 110 "terror sites" by air, sea and land since midnight.
Palestinian health officials said the latest fatalities include ten members of the same family who were killed during an Israeli airstrike.
The total Palestinian death toll now stands at more than 1,150.
A Palestinian girl at the scene of an explosion that killed nine children Israel has lost 53 soldiers, along with two civilians and a Thai national.
Mr Netanyahu launched the aerial offensive against Gaza on July 8, declaring the aim was to halt rockets fired by Hamas and its allies into Israel.
It launched a ground invasion shortly afterwards, primarily aimed at destroying a network of cross-border tunnels which Hamas is accused of using to infiltrate Israel.
Dozens of Israeli soldiers have been killed while fighting in Gaza The US has reiterated that it supports Israel's right to defend itself, but is working towards deescalating the conflict.
US Secretary of State John Kerry told reporters: "We are working very carefully with our Israeli friends in order to reduce the civilian loss of life, to prevent this from spiralling downwards into a place from which both sides have difficulty finding a way forward in order to address the underlying issues".
The destroyed plant supplies two thirds of the territory's energy needs Earlier on Tuesday a senior official of the Palestine Liberation Organisation (PLO) said the Palestinian leadership, along with Hamas and the smaller Islamic Jihad group, were willing to observe a humanitarian truce of 24 hours.
But the statement was contradicted by a Hamas spokesman in Gaza who said the PLO official was not speaking on behalf of the group.
Israel rejected the offer saying that until it heard from Hamas directly, it was "not serious".
The plant's director said the facility was 'finished' The proposal came after the fuel depot at Gaza's only power plant was practically destroyed on Tuesday morning, cutting electricity to a large proportion of the enclave's 1.8 million residents and causing further disruption to the water supply.
The power plant supplies two thirds of the territory's energy needs and was engulfed in flames sending a column of black smoke into the air.
The Al Aqsa TV headquarters were hit by an Israeli shell According to a spokesman for Gaza's electricity distribution company, the power plant was hit by shells fired from an Israeli tank, a claim which could not be verified.
The power station was hit last week and had been operating on a reduced capacity providing only a few hours of electricity per day to Gaza's residents.
"The power plant is finished," said its director, Mohammed al Sharif, who added the local fire brigade was not equipped to extinguish the blaze.
Other symbols of Hamas government control, including the headquarters of the Hamas satellite TV station Al Aqsa and Al Aqsa radio were also targeted.
Hamas said that despite the attack the stations continued to broadcast.
The home of Hamas leader Ismail Haniyeh was also hit by a missile early this morning causing damage but no casualties, Gaza's Interior Ministry said.
Iran's supreme leader Ayatollah Ali Khamenei on Tuesday accused Israel of committing "genocide" in Gaza and called on the Islamic world to arm Palestinians fighting "the Zionist regime".
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