Palestinian official says Hamas agrees to Gaza proposal, Israel dismisses it

CAIRO (Reuters) -A Palestinian official said on Monday that Hamas has agreed to a proposal by U.S. special envoy Steve Witkoff for a Gaza ceasefire, only for an Israeli official to deny that the proposal was Washington's and add that no Israeli government could accept it.

Witkoff also rejected the notion that Hamas had accepted his offer for a hostage deal and a ceasefire in Gaza, telling Reuters that what he had seen was "completely unacceptable" and the proposal being discussed was not the same as his.

The Palestinian official, who is close to Hamas, had told Reuters that the proposal would see the release of 10 hostages and a 70-day ceasefire and was received by Hamas through mediators.

"The proposal includes the release of 10 living Israeli hostages held by Hamas in two groups in return for a 70-day ceasefire and a partial withdrawal from the Gaza Strip," the source said.

It also included the release of a number of Palestinian prisoners by Israel, including hundreds serving lengthy prison terms.

An Israeli official dismissed the proposal, saying no responsible government could accept such an agreement and rejecting the assertion that the deal matched one proposed by Witkoff.

On March 18, Israel effectively ended a January ceasefire agreement with Hamas and renewed its military campaign in Gaza. Hamas and allied factions began firing rockets and attacks two days later.

Hamas has said it is willing to free all remaining hostages seized by its gunmen in attacks on communities in southern Israel on October 7, 2023, and agree to a permanent ceasefire if Israel pulls out completely from Gaza.

Israeli Prime Minister Benjamin Netanyahu has said Israel would only be willing to agree to a temporary ceasefire in return for the release of hostages, vowing that war can only end once Hamas is eradicated.

Israel launched an air and ground war in Gaza after the Hamas-led militants' cross-border attack, which killed 1,200 people by Israeli tallies, with 251 hostages abducted into Gaza.

The conflict has killed nearly 54,000 Palestinians, according to Gaza health authorities, and devastated the coastal strip. Aid groups say signs of severe malnutrition are widespread.

(Reporting by Nidal Al-Mughrabi in Cairo; James Mackenzie in Jerusalem and Steve Holland in Washington; Writing by Menna Alaa El-Din and Tom Perry; Editing by Andrew Cawthorne, Sophie Walker and Alison Williams)