"Hamas chief, Sinwar's body is a negotiating card for the release of hostages."

The body of Hamas chief Yahya Sinwar, who was killed by Israeli forces, may be used as a bargaining chip for the release of hostages held in Gaza, CNN reported, citing Israeli sources.

Currently, Sinwar's body is in a secret location in Israel, local media say.

Two sources said winning a hostage release was likely to be Israel's priority in deciding how to use Sinwar's body as leverage.

Hamas launched a surprise attack on Israel in October last year, taking more than 250 people hostage, and more than 100 people remain in Gaza, including those killed.

An Israeli source said he was considering how to quickly put pressure on Hamas for the release of the remaining hostages.

The source said a hostage swap was likely the only way Shinwar's body could return to Gaza, adding that "other than that, nothing will happen."

He also predicted that if Sinwar was buried in Gaza, it could become a sacred place for followers.