Hamas says it has offered to release Edan Alexander, an Israeli soldier who holds American citizenship, and the bodies of four other dual nationals.
However, two officials from the group told the news agency Reuters the release was conditional on beginning the talks on the second phase of a ceasefire and lifting of a total blockade imposed by Israel two weeks ago.
Mr Alexander, 21, from the US state of New Jersey, was 19 when he was taken from his base on the border with Gaza in southern Israel during the Hamas attacks on 7 October 2023.
He is believed to be the last living American hostage being held in Gaza.
Steve Witkoff, President Donald Trump’s special envoy, told reporters earlier this month that achieving his release was a “top priority”, while US hostage negotiator Adam Boehler has been meeting Hamas leaders in recent days.
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Hamas said it was taking action after being contacted by mediators about negotiations for the second phase of a peace deal.
The group, which runs Gaza and describes itself as an “Islamic Resistance Movement”, said it had “responded responsibly and positively”.
It also mentioned its “complete readiness to begin negotiations and reach a comprehensive agreement on the issues of the second phase”.
It called on the “occupation” (Israel) to “fully implement its obligations”.
The Israeli prime minister’s office, however, said Hamas had “not budged a millimetre” and was engaging in “manipulation and psychological warfare”.
Israel has been pressing Hamas to release half the remaining hostages in return for an extension of the first phase of the peace deal, and a promise to negotiate a lasting truce.
It is believed Hamas still has 24 living hostages and the bodies of 35 others.
Middle East correspondent
Israel and Hamas say they are both willing to extend the ceasefire in Gaza, but there is a significant difference in opinion as to how that should happen.
Israel says it is committed to the ‘Witkoff Plan’ which proposes releasing half of the remaining 59 hostages immediately and then the remaining hostages at the end of six weeks, as long as there has been an agreement reached by then to end the war.
Hamas is insisting on the implementation of phase two of the original agreement, which would see a complete withdrawal of IDF troops from Gaza, an end to the fighting and the end of Hamas rule in Gaza.
Each side is trying to curry favour with Washington: Israel by endorsing Mr Witkoff’s plan and Hamas by releasing at least one US national, Edan Alexander.
Talks in Doha have continued all week, which has been seen as a positive sign, but Israeli President Benjamin Netanyahu has now recalled his negotiating team for further consultations this weekend.
Israel has already stopped humanitarian aid deliveries into Gaza and cut off electricity to a water treatment plant, inciting international condemnation, but not from the US.
After 15 months of war, it’s not clear what a resumption in fighting would achieve for Israel, and it could risk the lives of the remaining living hostages. A deal with Hamas remains the best opportunity to release the captives.
But an end to the war, as Hamas is demanding, could collapse the Israeli government if the far-right parties resign, as they have threatened to do, and therefore end Mr Netanyahu’s hold on power.
Key, probably, will be US President Donald Trump’s reaction and whether he agrees that Hamas are being manipulative and disingenuous or if he feels Mr Netanyahu is passing up on an opportunity to get more hostages home and extend the ceasefire.
Fighting has been halted in Gaza since 19 January under the first phase of a three-section ceasefire, during which Hamas exchanged 33 Israeli hostages and five Thais for 2,000 Palestinian prisoners and detainees.
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But, when the first phase finished on 2 March, the two sides failed to agree to begin the second one.
Israel offered to extend the first phase, while Hamas said it would resume releasing hostages only under the second phase, during which Israel is required to discuss troop withdrawal and a permanent end to the war.
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Israel blocked the entry of all supply trucks into Gaza on 2 March, while Hamas called on Egyptian and Qatari mediators
to intervene.
