The government is under pressure from two influential House of Commons select committees to drop the boycott of contacts with Hamas which it shares with members of the international Middle East Quartet.
The chairman of one of the committees, Labour MP Mike Gapes, last week held private talks on the issue with Tony Blair, Middle East envoy of the Quartet - the United States, the European Union, the United Nations and Russia.
The Quartet has pledged to refuse dialogue with Hamas until it recognises Israel's right to exist, renounces violence and agrees to abide by all agreements between Israel and the Palestinian Authority.
Mr Gapes, chairman of the foreign affairs committee and a noted supporter of Labour Friends of Israel, said: "The Quartet, including Britain, should try to engage with moderate elements within Hamas, especially in view of the current Gaza ceasefire."