Hamas officials have said a new ceasefire deal could be reached within 24 hours as a delegation from the terror group arrived for crunch talks in Egypt.
The group is said to have given Israel demands including a military withdrawal from Gaza and stepped-up humanitarian aid.
Israel wants a full list of all hostages who are still alive before agreeing to a truce, with a US source saying that the ball is in Hamas’ court.
Envoys from the US, Qatar and Hamas arrived in Cairo in a bid to reach a deal before the Muslim holy month of Ramadan starts around March 10.
Ramadan has historically been a critical time in Israel where conflict typically erupts in Jerusalem around the site of the holy Al-Aqsa mosque, on which Jews also lay claim to being a historical holy site.
The terms of the deal would also see the release of some of the remaining roughly 130 hostages taken from Israel on Oct 7, when thousands of Hamas militia invaded Israel, killing 1,200 and taking over 250 more hostages.
However, the latest talks suggested only 40 of the hostages would be released in exchange for around 400 Palestinian prisoners in Israeli jails.
Earlier ceasefire deals unsuccessful
The latest talks come after a number of false starts, with early reports of a ceasefire deal often dashed by a breakdown in talks or an eruption of violence.
It faces significant opposition in Israel still, with deep scepticism over trade-off.
A security source in Israel told The Telegraph: “This is a very sensitive time as it’s reminiscent of the Gilad Shalit deal in which over 1,000 Palestinians were released in return for one Israeli soldier.
“While the priority is the release of the hostages, many of the 1,000 released before were responsible for what happened on Oct 7 so to see this repeated, would signal disaster for those who remember.”
On Thursday, Benjamin Netanyahu, the Israeli prime minister, said a deal was premature.
“We demand to know the names of all prisoners who will be part of the potential deal in advance,” he said at a news conference.
“I cannot make a commitment regarding reaching an agreement at this time,” he said and emphasized that Israel “will not cease the war against the Hamas,” suggesting a ceasefire will only be a temporary measure.
In November, 81 Israelis and 24 foreigners were released from Gaza in exchange for 240 Palestinians, including 71 women and 169 children.
According to Hamas, around 30,000 Gazans have been killed in the offensive launched by Israel in the wake of the Oct 7 invasion which has since left 250,000 Israelis displaced in the country. The war in Gaza has left around 80 per cent of the residents displaced.