Axios reports Hamas gave Israel a new hostage deal proposal through Qatari and Egyptian mediators on Sunday, December 31. The media cites two Israeli officials and one source familiar with the proposal.

One Israeli official stated that Hamas' new proposal involved a three-phase process. Each phase would include a ceasefire for over a month in exchange for releasing hostages. In the first phase, Hamas demands the withdrawal of Israeli forces from the Gaza Strip in exchange for the release of approximately 40 hostages. The deal would also involve the release of a large group of Palestinian prisoners held in Israeli prisons. However, the publication did not specify the proportions. The third stage would include the ending of the war and the release of all hostages, including military personnel.

According to an Israeli official, the war cabinet discussed Hamas's new proposal and informed Qatari and Egyptian mediators on Monday, January 1, that it was unacceptable. The source noted that negotiations are ongoing, but significant progress has yet to be made.

While Israel rejected Hamas's proposal, one Israeli official pointed out that the offer indicates that Hamas is now willing to engage in negotiations for a new hostage agreement, even as hostilities in the Gaza Strip continue. Earlier, Hamas had stated that Israel must end the war before new talks on a prisoner exchange could begin.