Qatar says it will withdraw from arbitration until both sides show serious intent to return to the negotiating table.
"We have informed both Israel and Hamas that mediation cannot continue as long as they refuse to negotiate in good faith," a Qatari diplomatic source said.
Qatar also called for the de facto withdrawal of Hamas's political office in its capital Doha, saying it was "no longer fit for purpose."
Hamas has had a politburo office in Doha since 2012 with U.S. support.
Earlier, the U.S. called on Qatar to expel Hamas because Hamas rejects the deal, Reuters reported, citing a senior U.S. official.
Negotiations over a ceasefire and hostage release brokered by the United States, Qatar and Egypt have been stalled in recent months.
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