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.

Israel has announced plans to reoccupy Gaza City, putting Hamas under pressure to reach a ceasefire deal. But there has been no formal response about whether Israel will agree to the terms.

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.