A senior Egyptian official said Israel had proposed a two-month ceasefire in which the hostages would be freed in exchange for the release of Palestinians imprisoned by Israel and top Hamas leaders in Gaza would be allowed to relocate to other countries.
The official, who spoke on condition of anonymity, said Hamas rejected the proposal and was insisting that no more hostages would be released until Israel ended its offensive and withdrew from Gaza. Israel's government declined to comment on the talks.
Israel launched the offensive after Hamas's October 7 cross border attack that killed over 1,200 people and abducted some 250 others. More than 100 were released in November in exchange for a weeklong cease-fire and the release of 240 Palestinians imprisoned by Israel.
The offensive has caused widespread destruction, displaced an estimated 85% of Gaza's population and left over 25,000 Palestinians dead, according to health officials in the Hamas-run territory.
The United Nations and international aid agencies say the fighting has unleashed a humanitarian disaster, with a quarter of the area's 2.3 million people facing starvation.