The Israeli security cabinet approved a Gaza ceasefire and hostage release deal on Friday, recommending the wider government give its final green light, the office of Prime Minister Benjamin Netanyahu said.

"After reviewing all the political, security and humanitarian aspects, and understanding that the proposed deal supports achieving the objectives of the war, (the security cabinet) has recommended that the government approve the proposed framework," the office said in a statement.

The ceasefire is expected start on Sunday with the first hostages released.

The security cabinet meeting came after Netanyahu’s office said there were last minute snags in finalising the ceasefire agreement.

Israel had delayed a security cabinet vote on Thursday, blaming the dispute with Hamas for holding up approval.

However, a pre-dawn statement cleared the way for the deal to be voted on.

Under the deal expected to begin on Sunday, 33 hostages are set to be released over the next six weeks, in exchange for hundreds of Palestinians imprisoned by Israel.

The remainder, including male soldiers, are to be released in a second phase that will be negotiated during the first.

Hamas has said it will not release the remaining captives without a lasting ceasefire and a full Israeli withdrawal. (Agencies)