Israel's security cabinet has voted to reject a long-term ceasefire deal with Hamas, the Palestinian group in Gaza, until an Israeli soldier held captive is released.

Members of the cabinet are believed to have also considered freeing Palestinian prisoners in exchange for Sergeant Gilad Shalit.

The meeting came amid negotiations towards a long-term "calm period" in Gaza after Israel's 22-day war on the Hamas-run territory.

"The security cabinet unanimously decided that the release of the soldier Shalit is a condition to any agreement with Hamas," Meir Sheetrit, the interior minister, said on Wednesday.