GAZA, Jan 2 (Reuters) - Egypt has begun an initiative that could halt the fighting in the Gaza Strip following Israel's week-long aerial pounding of the territory and militant rocket attacks on the Jewish State, a Palestinian official said on Friday.

The senior Palestinian official, who declined to be named and who has been close to previous talks between Egypt and Hamas, said Egypt had started contacts with Hamas to discuss ideas about restoring a ceasefire to the strip.

The official confirmed that the aim of the talks included promoting ideas that would culminate in a new truce.

Israel's bombing of the coastal enclave entered a seventh day on Friday. At least 425 Palestinians have been killed and 2,000 wounded. Four Israelis have been killed by rockets that have fallen on towns and villages in southern Israel. (Reporting by Nidal al-Mughrabi; Writing by Ori Lewis; Editing by Giles Elgood)

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