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Hamas on Friday announced it agreed to release all Israeli hostages, dead or alive, as part of President Donald Trump's Gaza proposal, Reuters reported.

Leaders also indicated they were prepared to enter mediated negotiations to finalize the deal, according to the report.

The announcement came hours after Trump issued a public warning to the terrorist group, noting its leaders would be "hunted down, and killed" if the remaining Israeli hostages were not released by Sunday night.

<i>This is a developing story. Please check back for updates.&nbsp;</i>

<div class="author-bio"><p>Alexandra Koch is a Fox News Digital journalist who covers breaking news, with a focus on high-impact events that shape national conversation.</p><p>She has covered major national crises, including the L.A. wildfires, Potomac and Hudson River aviation disasters, Boulder terror attack, and Texas Hill Country floods.</p></div>

President Donald Trump's Gaza proposal prompts Hamas to agree to hostage release following his warning that leaders face death if hostages aren't freed by Sunday.{ai:summary}<p>Hamas says it will release all Israeli hostages, dead or alive, under Trump's Gaza proposal, and signals readiness for mediated talks.</p><p>Trump warned Hamas leaders would be hunted if any hostages remain unreleased by Sunday night. #israel</p>

Hamas agrees to release all Israeli hostages outlined in Trump Gaza peace deal: report

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