Hamas is studying a 40 day ceasefire deal which would include the exchange of Palestinian prisoners for Israeli hostages at a ratio of 10 to one.

The draft proposal also states Hamas would free 40 Israeli hostages including women, children under 19, elderly over 50 and the sick, while Israel would release around 400 Palestinian prisoners and will not re-arrest them, a senior source close to the talks told Reuters.

Under the proposed ceasefire, hospitals and bakeries in Gaza would be repaired, 500 aid trucks would enter into the strip each day and thousands of tents and caravans would be delivered to house the displaced.

It comes as Joe Biden said Israel had agreed to halt its offensive in Gaza during Ramadan.

“There’s been an agreement by the Israelis that they would not engage in activities during Ramadan as well in order to give us time to get all the hostages out,” he told NBC.

He added that he hopes to have a ceasefire between Israel and Hamas by next week.

Follow the latest updates below