President Donald Trump has demanded Hamas to immediately release all hostages held in Gaza in what he called his "last warning."

Trump urged the group's leadership to leave the heavily bombarded enclave, issuing a strong warning against the militant group.

He posted on his Truth Social page: "This is your last warning! For the leadership, now is the time to leave Gaza, while you still have a chance.

"Also, to the People of Gaza: A beautiful Future awaits, but not if you hold Hostages. If you do, you are DEAD!"

Trump has issued the warning to Hamas

Palestinian Hamas militants keep guard on the day Hamas hands over deceased hostages Reuters

Smoke rises following Israeli strikes in GazaReuters

Trump added: "Release all of the Hostages now, not later, and immediately return all of the dead bodies of the people you murdered, or it is OVER for you.

"Only sick and twisted people keep bodies, and you are sick and twisted! I am sending Israel everything it needs to finish the job, not a single Hamas member will be safe if you don’t do as I say. I have just met with your former Hostages whose lives you have destroyed."

It comes as sources told reporters Trump administration has been conducting secret talks with Hamas to try to secure the release of US hostages seized in Israel and held in Gaza.

Hostage affairs envoy Adam Boehler has the authority to talk directly with Hamas, the White House said when asked about the discussions, which run counter to longstanding policy against negotiating with groups that the US has designated as terrorist organizations.

Trump called Gaza a “demolition site” where “people are dying”Getty

Each released hostage received the bag alongside a formal "release decision" certificate written in both Hebrew and Arabic

A spokesman from Prime Minister Benjamin Netanyahu's office said: "Israel has expressed to the United States its position regarding direct talks with Hamas" without elaborating.