JERUSALEM (Reuters) - Israel sees in the Egyptian-proposed Gaza truce an opportunity to strip the Palestinian enclave of rockets but is prepared to redouble military action there if the cross-border launches persist, Prime Minister Benjamin Netanyahu said on Tuesday.

"We agreed to the Egyptian proposal in order to give an opportunity for the demilitarization of the (Gaza) Strip - from missiles, from rockets and from tunnels - through diplomatic means," he told reporters.

"But if Hamas does not accept the ceasefire proposal, as would now seem to be the case, Israel would have all international legitimacy to broaden the military operation to achieve the required quiet."

(Writing by Dan Williams, Editing by Jeffrey Heller)