A Hamas leader told AFP on Saturday talks had made “significant and important progress” in recent days.
“Most points related to the ceasefire and prisoner exchange issues have been agreed upon,” he said on condition of anonymity as he was not authorised to speak publicly on the issue.
“Some unresolved points remain, but they do not hinder the process. The agreement could be finalised before the end of this year, provided it is not disrupted by [Israeli Prime Minister Benjamin] Netanyahu’s new conditions.”
He said if an agreement is reached, it will be implemented in phases, ending with “a serious prisoner exchange deal, a permanent ceasefire and a complete withdrawal [of Israeli forces] from Gaza”.
On Wednesday, US Secretary of State Antony Blinken said he was “hopeful” for a deal, but avoided making any predictions as to when it would actually materialise.
“I don’t want to hazard a guess as to what the probability is,” he said at the Council on Foreign Relations.
“It should happen. It needs to happen. We need to get people home,” he said, referring to the release of hostages under a ceasefire deal.
Palestinian militants led by Hamas abducted 251 hostages during their attack on Israel on October 7 last year. Of those, 96 are still held in Gaza, including 36 the Israeli military says are dead.
Efforts to strike a truce and hostage release deal have repeatedly failed over key stumbling blocks.
Despite numerous rounds of indirect talks, Israel and Hamas have agreed just one truce, which lasted for a week at the end of 2023.
Negotiations have faced multiple challenges since then, with the primary point of contention being the establishment of a lasting ceasefire.
Netanyahu has repeatedly stated he does not want to withdraw Israeli troops from the Philadelphi Corridor, a strip of land cleared and controlled by Israel along Gaza’s border with Egypt.
Another unresolved issue is the governance of post-war Gaza.
It remains a highly contentious issue, including within the Palestinian leadership.
Israel has said repeatedly it will not allow Hamas to run the territory ever again.