Hamas has agreed to a 60-day ceasefire proposal with Israel that includes the return of half the hostages held in Gaza and Israel's release of some Palestinian prisoners, an Egyptian official source said on Monday.

Hamas said it has agreed to a deal proposed by Qatar and Egypt to pause the militant group’s war with Israel in Gaza, fueling optimism that a long-awaited breakthrough in negotiations could be close.

Israel announced plans to reoccupy Gaza City and other heavy populated areas after the ceasefire talks appeared to have broken down last month.