Israel's defence minister approved a plan on Wednesday for the control of Gaza City and authorised the call-up of around 60,000 reservists, piling pressure on Hamas as mediators push for a ceasefire.

Defence Minister Israel Katz's move came as mediators awaited an official Israeli response on their latest proposal.

While mediator Qatar had expressed guarded optimism over the latest proposal, a senior Israeli official said the government stood firm on its call for the release of all hostages in any agreement.

The framework that Hamas had approved proposes an initial 60-day truce, a staggered hostage release, the freeing of some Palestinian prisoners and provisions allowing for the entry of aid into Gaza.

Israel's security cabinet chaired by Prime Minister Benjamin Netanyahu approved the plan to control Gaza City in early August, sparking fears it will worsen the already catastrophic humanitarian crisis in Gaza.

According to Israeli media reports, Netanyahu has not yet called a security cabinet meeting to discuss any response to the latest truce proposal.

Katz's approval of plans to control Gaza City came days after Hamas said it had accepted the latest proposal from mediators for a ceasefire to halt almost two years of devastating war.

Israel and Hamas have held on-off indirect negotiations throughout the war, resulting in two short truces during which Israeli hostages were released in exchange for Palestinian prisoners.

Qatar, one of the mediators in the talks, said the latest proposal was "almost identical" to an earlier version agreed by Israel, while Egypt said on Monday that "the ball is now in its (Israel's) court".

Israeli Prime Minister Benjamin Netanyahu has yet to publicly comment on the truce plan, but said last week that his country would accept "an agreement in which all the hostages are released at once and according to our conditions for ending the war". (AFP)