JERUSALEM: A senior Israeli official on Tuesday (Aug 19) said the government stood firm on its call for the release of all hostages in any future Gaza deal, after Hamas accepted a new truce proposal.

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.

Amid reports Hamas has given a positive response to the latest ceasefire proposal, Minister Israel Katz says the threat of an IDF operation in Gaza City allowed diplomacy to resume.

Hamas has long called for a comprehensive deal but says it will only release the remaining hostages in return for the release of Palestinians imprisoned by Israel, a lasting ceasefire and an Israeli withdrawal from Gaza. The group has refused to lay down its arms, as Israel has demanded.

Hamas said that Israel's plan to relocate residents from Gaza City constitutes a "new wave of genocide and displacement" for hundreds of thousands.