Hamas has agreed to the latest proposal from regional mediators for a Gaza ceasefire and hostage release deal with Israel, a source in the Palestinian armed group has told the BBC.

According to a Palestinian official familiar with the talks, the proposal from Egypt and Qatar is a comprehensive two-stage plan based on a framework advanced by US envoy Steve Witkoff.

It would see Hamas free around half of the 50 remaining Israeli hostages – 20 of whom are believed to be alive – in two stages during a 60-day temporary truce. During that time, there would be negotiations on a permanent ceasefire and an Israeli troop withdrawal.

There was no immediate comment from Israeli officials.

On Sunday night, hundreds of thousands of people gathered in Tel Aviv to demand that Israel’s government agree a deal with Hamas to return the hostages.

Prime Minister Benjamin Netanyahu accused the demonstrators of hardening the negotiating position of Hamas.

The latest development comes two days after Netanyahu’s office said Israel would “agree to a deal on condition that all the hostages are released in one go”.

Meanwhile Israel’s cabinet is expected later this week to approve the military’s plans to expand its offensive in Gaza and occupy Gaza City.

Netanyahu announced Israel’s intention to do so after indirect talks with Hamas on a ceasefire deal broke down last month.

Hamas said at the time that it would only free the remaining hostages if Israel agreed to end the 22-month war. But Netanyahu said that would only happen once Hamas was disarmed and released all the hostages.

The Israeli military launched a campaign in Gaza in response to the Hamas-led attack on southern Israel on 7 October 2023, in which about 1,200 people were killed and 251 others were taken hostage.

At least 62,004 people have been killed in Gaza since then, according to the territory’s Hamas-run health ministry.