(Reuters) -Prime Minister Benjamin Netanyahu said on Thursday the outcome of Israel's war with Iran presented opportunities for peace that his country must not waste.

In a statement, Netanyahu said: "This victory presents an opportunity for a dramatic widening of peace agreements. We are working on this with enthusiasm.

"Alongside the freeing of hostages and defeat of Hamas, there is a window of opportunity that must not be missed. We cannot waste even a single day."

Earlier in the day, Israel Hayom newspaper, quoting an unnamed source, said Netanyahu and U.S. President Donald Trump agreed in a phone call this week on a rapid end to the war in Gaza, perhaps within two weeks.

Israel Hayom said the deal could expand the Abraham Accords with Israel's Arab neighbours to include Saudi Arabia and Syria.

It said that under the deal, Israel would support a future two-state solution conditioned on reforms in the Palestinian Authority.

The prime minister's office declined to comment on the Israel Hayom report. The White House did not immediately respond to a request for comment.

The U.S.-brokered Israel-Iran ceasefire announced by Trump raised hopes among Palestinians of an end to more than 20 months of war in Gaza that has widely demolished the territory and displaced most residents, with malnutrition widespread.

The war began with an October 7, 2023, attack on Israel by the Palestinian militant Hamas group, including the taking of hostages, 50 of whom remain in Gaza and only 20 of whom are believed to be alive.

Israeli far-right cabinet ministers Itamar Ben-Gvir and Bezalel Smotrich have called for the permanent conquest of Gaza and the re-establishment there of Jewish settlements that Israel abandoned in 2005, notions Netanyahu has rejected.

In a statement on Thursday, Smotrich said: "Mr. Prime Minister, let it be clear: you do not have a mandate — not even a hint of one, or a lip-service one. If there are countries that want peace in exchange for peace — welcome. If they want a Palestinian state — they can forget it. It won’t happen."

On Sunday, Netanyahu said that with a weakened Iran, he expected more countries to join the Abraham Accords.

"We have broken the axis," Netanyahu told reporters then. "This is a huge change and Israel's status is rising, not just in the Middle East but also in the world. This is a tectonic shift."

(Reporting by Howard Goller, Maayan Lubell, Steven Scheer and Crispian Balmer; Editing by Andrew Cawthorne and Alistair Bell)