Discussions took place on Wednesday night between US President Donald Trump's Middle East Envoy Steve Witkoff, Hamas leaders, and mediators from Egypt and Qatar, two Egyptian sources tell Reuters.
Sources say American-Egyptian talks discussed governance of Gaza after the end of the war, including names of those who would manage the Strip.
Sources say that the discussions ended positively and indicate a near transition to a second phase of the Gaza ceasefire agreement.
An Israeli official told The Jerusalem Post that Israel is unaware of any advancements regarding phase two of the hostage deal.
Hamas said on Thursday that Trump's repeated threats against Palestinians constituted support for Israel's Prime Minister Benjamin Netanyahu to back out of the Gaza ceasefire and intensify the siege of Gaza.
Trump demanded on Wednesday that Hamas "release all of the hostages now, not later," including the remains of dead hostages, "or it is OVER for you."
In a text message to Reuters, Hamas spokesperson Abdel-Latif Al-Qanoua said: "The best track to release the remaining Israeli prisoners is by the occupation going into the second phase and compelling it to adhere to the agreement signed under the sponsorship of mediators."
Hostage-ceasefire deal between Israel and Hamas
The Gaza ceasefire deal, which came into effect in January, was negotiated with Trump's envoy, who participated alongside envoys of the outgoing Biden administration. It calls for remaining hostages to be freed in a second phase, during which final plans would be negotiated for an end to the war.
The first phase of the ceasefire ended on Saturday, and Israel has since imposed a total blockade on all goods entering Gaza, demanding that Hamas release the remaining hostages without beginning the negotiations to end the war.
Palestinians say the blockade could lead to starvation among the 2.3 million people living in Gaza's ruins.
Trump made his new threats after a White House meeting on Wednesday with a group of hostages who had been released in the first phase of the Gaza ceasefire deal.
"I am sending Israel everything it needs to finish the job; not a single Hamas member will be safe if you don’t do as I say," he said. "Also, to the People of Gaza: A beautiful Future awaits, but not if you hold Hostages. If you do, you are DEAD! Make a SMART decision. RELEASE THE HOSTAGES NOW, OR THERE WILL BE HELL TO PAY LATER!"