Egypt has recently proposed amendments to its peace treaty with Israel but Israel turned them down, Israeli Vice Prime Minister Moshe Ya'alon said.

Egypt deployed reinforcements in the Sinai Peninsula in an attempt to rid the area of terrorist activities following the death of 16 Egyptian police and army men in Rafah last August.

Egypt's security operation received a wary approval from Israel who expressed concerns over the deployment of reinforcements as it defies the peace treaty signed between the two neighbors in 1979.

Ya'alon insisted that Egypt must accept the Israeli stance in order to maintain U.S. aid.

"We have a peace treaty with Egypt. We do not conduct pinpoint strikes in Sinai, and so terrorists have greater freedom to operate there. We demand from the Egyptians that they act with resolve and impose their sovereignty there, and this will be put to the test." Ya'alon said as reported by Israel Hayom.

He added that Israel would be willing to negotiate Egypt's further deployment of forces in Sinai "but it would be a very bad precedent if we would agree to renegotiate our treaty."

"Egyptian President Mohammed Morsi is a member of the Muslim Brotherhood, he has been cautious in his speeches. He refrains from mentioning Israel, but on the other hand he is confined by certain constraints. Even though he wants very much to renegotiate the treaty, he is forced to say he is committed to it, because if he does not say this, aid money from the U.S. would no longer flow to Egypt. This is the political reality and it proves that a treaty that is not backed up with incentives is not worth the paper it is written on," Ya'alon said as reported by Israel Hayom.

Egypt's presidential spokesman said last month that there is no need to amend the Camp David Accord and that Egypt is able to restore order in the Peninsula.