AAP


The Australian government has urged both Israel and Palestine to stick to the terms of a ceasefire which began on Thursday morning (AEDT).


Prime Minister Julia Gillard and Foreign Minister Bob Carr welcomed the ceasefire, saying its negotiation by Egypt was a commendable demonstration of that country's regional leadership.


"Australia reiterates its call on both sides to resume negotiations towards a two-state solution comprising an independent Palestinian state with agreed borders alongside a secure Israel," they said in a joint statement.


Australia condemned the terrorist attack on a bus in Israel on Wednesday, which injured more than 20 people, and expressed sympathy to those affected by the attack.


Ms Gillard and Senator Carr urged both sides to adhere to the ceasefire terms.


"It will be particularly important that there be no return to rocket fire from Gaza," they said.


Senator Carr rang the Egyptian ambassador to Australia on Thursday and asked him to convey Australia's support and admiration for the leadership role of President Mohamed Morsi.


"There would be many people who would say that in a region that's provided such bad news, not only this truce but the leadership role that Egypt has demonstrated in achieving it stands out," he told reporters in Canberra.


"We commend Egypt's leadership in brokering this agreement, supported of course by the efforts of the US, the United Nations Secretary-General and countries in the region."