Reuters quoted sources as saying an agreement could be reached over a ceasefire and the release of hostages in the coming days on the cease-fire talks in Cairo, Egypt.
The talks were joined by U.S. officials and arbitrators, including Egypt and Qatar, and came as the Biden administration is speeding up last-minute mediation ahead of his retirement next month.
Egyptian security sources told Reuters negotiations were moving forward and that the night of the 17th could be crucial to setting the next stage.
Palestinian militant Hamas also said in a statement that an agreement was possible on the premise that Israel would stop "adding conditions."
Earlier, Israeli authorities also said negotiations were progressing and were very close to an agreement.
According to diplomatic officials, the negotiations currently under discussion call for a ceasefire to be carried out in several stages.
The first phase is six weeks, during which Hamas releases a number of hostages, including women, the elderly and the wounded, and Israel releases hundreds of Palestinian prisoners.
Israeli forces will withdraw from parts of Gaza's densely populated areas, but for the time being, they will remain in the Piladelpi Corridor, the border between Gaza and Egypt, and the Netzarim Corridor, which divides Gaza into north and south.
In addition, negotiations to officially conclude the war will be held during the first phase of the ceasefire, discussing the complete withdrawal of Israeli troops, the release of remaining hostages by Hamas, and the delivery of bodies.
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