Hamas has rejected an extension of the three-day ceasefire in Gaza, a senior official said.
The ceasefire is due to end at 05:00 GMT on Friday morning.
The official told the Associated Press that Israel had failed to meet Hamas' demands, which included the reopening of Gaza's border and allowing Gaza to be rebuilt.
Earlier, Israel accused "terrorists" of violating the ceasefire after two rockets fired from Gaza hit southern Israel.
There have been two days of quiet in Gaza. No rockets or missiles, no more destroyed houses, no more ambulance sirens screaming.
A three-year-old girl has been rescued from Gaza and brought to London for life-saving heart surgery.
A small team of NHS doctors and surgeons is travel to Gaza to set up facilities and establish how best to use specialists and equipment.