A Hamas delegation led by senior leader Khalil al-Hayya agreed on Saturday in Cairo to release all Israeli hostages in exchange for a five-year truce, according to an Egyptian security source.

The source described talks on Saturday as "very important" for advancing efforts to end the war in Gaza, noting that the Hamas delegation accepted the five-year truce proposal after reviewing various offers.

So far, Israel has not formally responded to any of the proposals, but has given the green light for negotiations to continue regarding the release of hostages, the source added.

Egypt's Al-Qahera News TV channel reported the Hamas delegation would also discuss a comprehensive deal that ensures the full withdrawal of the Israeli forces from Gaza, and securing the delivery of humanitarian aid to the enclave.

Talks are expected to include the formation of a committee to manage Gaza's administration.