Hamas said it would release Israeli-American soldier Edan Alexander if Israel started the next phase of ceasefire talks.

Hamas says it has accepted a proposal from mediators to release one living American-Israeli hostage and the bodies of four dual-nationals.

Hamas says it will only release an American-Israeli and the bodies of four other hostages if Israel implements the existing ceasefire agreement in the Gaza Strip, calling it an "exceptional deal" aimed at getting the truce back on track.

Hamas said it’s willing to release all American-Israeli hostages, including one still alive, in a surprise move dismissed by both Israel and the US as unhelpful to negotiation efforts to end the war.

Hamas said on Friday it had agreed to free an American-Israeli dual national if Israel begins a phase of ceasefire talks towards a permanent end to the war, but Israel dismissed the offer as "psychological warfare".

The United States has put forward a new proposal that would secure the release of a handful of living hostages held by Hamas in exchange for a month-long extension of the Israel-Hamas ceasefire, a source familiar with the negotiations said.

Israeli fire has killed eight people in the Gaza Strip over the past 24 hours even as a fragile ceasefire with Hamas has largely held.

As Hamas on Friday offered to release American Israeli soldier Edan Alexander and the remains of four other hostages held in Gaza, Israel's prime minister called it psychological manipulation.