Arab mediators are working to reach a new Israel-Hamas ceasefire deal that would secure the release of 12 living hostages out of the 24 still believed to be held alive by Hamas in Gaza.

The United States has put forward a new proposal that would secure the release of a handful of living hostages held by Hamas in exchange for a month-long extension of the Israel-Hamas ceasefire, a source familiar with the negotiations said.

Hamas said on Friday it agreed to release an American-Israeli dual national, believed to be the last living American hostage held in Gaza, after receiving a proposal from mediators to continue negotiations on the second phase of a ceasefire deal.