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

It was unclear whether Prime Minister Benjamin Netanyahu of Israel was on board with the terms, which came as Qatar and Egypt were intensifying mediation efforts.

Hamas has told Egyptian and Qatari mediators it is willing to accept a ceasefire proposal to end the war in Gaza and secure the release of Israeli hostages, said a diplomat briefed on the talks. They said the Palestinian militant group had agreed a deal that would preserve “98 per cent” of a proposal first put forward by US envoy Steve Witkoff in May,