The head of the Fatah faction in the Palestinian parliament, Azzam al-Ahmed, said on Tuesday that significant progress has been made in Egyptian-mediated reconciliation talks with Hamas.

The Fatah deputy said that both sides have found common ground on key issues, including Hamas prisoners being held in Palestinian Authority prisons, Palestinian elections, as well as the make-up of the armed force that is likely to be deployed in the Gaza Strip.

Both sides are currently discussing a deal whereby 75 percent of parliament members would be elected via party lists while the remaining 25 percent would be subject to regional polls.

Hamas and Fatah are also believed to be in agreement that the Gaza force would number 3,000 armed personnel. In addition, both the Fatah-run governments in the West Bank and the Hamas regime in Gaza would continue to rule while a joint committee is formed to administer the rehabilitation of the Strip and preparations for elections.

Israel opposes Egypt's proposal of a Palestinian unity government because it allows Hamas to be part of the Palestinian leadership.

Israel is holding talks with Egypt on a new cease-fire agreement in Gaza - the negotiations revolve around an Egyptian proposal within a broader effort to reconcile the two main Palestinian factions, Fatah and Hamas.

Another plank in the broader agreement being discussed is the reopening of the crossings to the Gaza Strip, on the border with Sinai and Israel.