JERUSALEM, Jan 7 (Reuters) - Israel is holding talks with Egypt and Western powers over a proposal by Cairo for a ceasefire in the Gaza Strip, Israeli officials said on Wednesday, describing the plan as a "work in progress".

"There are ongoing contacts with the relevant parties as to the parameters of a sustainable quiet that must include the total cessation of all hostile fire from Gaza into Israel, and the complete ending of arms smuggling into the Gaza Strip," said Mark Regev, Israeli Prime Minister Ehud Olmert's spokesman.

Another Israeli official, speaking on condition of anonymity, described the Egyptian plan as "still a work in progress" and said negotiations were underway over the details.

Israel wants a specialised international force to search out and destroy tunnels along the border between Gaza and Egypt to prevent Hamas from rearming. (Reporting by Adam Entous; Editing by Joseph Nasr)

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