Mr Kerry said he still hoped for an initial seven-day truce next week.
Hamas, the Islamist group which controls Gaza, said earlier it would not accept a deal without an end to Israel's blockade of the Gaza Strip.
More than 800 Palestinians, mostly civilians, and 36 Israelis have died since the start of the conflict between Israel and Hamas which entered its 18th day on Friday.
A senior Israeli official told the Reporter that Mr Yaalon and Israeli Prime Minister Benjamin Netanyahu were "considering a 12-hour humanitarian ceasefire" in Gaza.
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