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 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. On March 18, Israel effectively ended a January ceasefire agreement with Hamas and renewed its military campaign in Gaza.