By Jeremy Diamond, Dana Karni and Tamar Michaelis

(CNN) — Hamas has agreed to a new Egyptian proposal to release 5 hostages, including the American-Israeli Edan Alexander, in exchange for a renewed ceasefire, a Hamas source tells CNN.

Hamas leader Khalil Al-Hayya said in a televised address on Saturday that the militant group had engaged “positively” with the draft deal sent by Egyptian mediators and accepted its terms.

That deal would involve the release of five hostages, including American-Israeli Edan Alexander, in exchange for a renewed ceasefire, a Hamas source told CNN. Hamas expects a return to phase 1 ceasefire conditions, including the entry of humanitarian aid, as well as an agreement to negotiate the second phase of the ceasefire, the source said.

The proposal is similar to one presented several weeks ago by US special envoy Steve Witkoff, although it is not clear whether it also includes the release of additional bodies of deceased hostages.

Al-Hayya added that Hamas has “fully abided” by the terms of the first ceasefire deal and hopes Israel “does not obstruct this proposal.”

Israel responded to the Egyptian offer with a counter-proposal, according to a statement from the Israeli Prime Minister’s office.

Israel’s counter demands the release of 11 living hostages and half of the deceased hostages in return for a 40-day ceasefire, a senior Israeli official told CNN on Sunday.

A total of 24 living hostages are believed to be in Gaza and the bodies of 35 deceased hostages are thought to still be held in the enclave.

“Prime Minister Benjamin Netanyahu conducted a series of consultations yesterday, following a proposal received from the mediators. In recent hours, Israel transferred its counter proposal to the mediators, in full coordination with the United States,” the prime minister’s office said on Saturday.

Israel also insisted that during the ceasefire, humanitarian aid will be directed to civilians, and the mediators will ensure that the hostages in captivity receive proper care, including food, according to the Israeli official.

Israel earlier this month renewed attacks in Gaza and imposed a complete blockade of humanitarian aid entering the enclave, warning that its forces will maintain a permanent presence in parts of Gaza until the release of the remaining living hostages.

According to health authorities in Gaza, at least 50,277 Palestinians have been killed and another 114,095 injured since Israel’s military offensive began in the enclave, following deadly terror attacks launched by Hamas on October 7, 2023.

Reporting contributed by CNN’s Eyad Kourdi.

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