US President Donald Trump on Friday reiterated his administration's commitment to resolving the ongoing hostage crisis in Israel, declaring, "The situation has to end. It's extortion and it has to end."

Trump emphasised his role in previous hostage releases and assured families that efforts continue to secure the remaining captives.

Israeli Prime Minister Benjamin Netanyahu said on Thursday that Israel would immediately resume negotiations for the release of all hostages held in Gaza and an end to the nearly two-year-old war but on terms acceptable to Israel.

It was Netanyahu's first response to a temporary ceasefire proposal put forward by Egypt and Qatar that Hamas accepted on Monday. Israel will dispatch negotiators to talks once a location is set, an Israeli official said.

Speaking to soldiers near Israel's border with Gaza, Netanyahu said he was still set on approving plans for defeating Hamas and capturing Gaza City, the densely populated centre at the heart of the Palestinian enclave.

Thousands of Palestinians have left their homes as Israeli tanks have edged closer to Gaza City over the last 10 days.

Israel's plan to seize Gaza City was approved this month by the security cabinet, which Netanyahu chairs, even though many of Israel's closest allies have urged the government to reconsider.

His latest remarks underscore the Israeli government view that any deal ensures the release of all 50 hostages captured in Israel in October 2023 and still held by militants in Gaza. Israeli officials believe around 20 are still alive.

The proposal on the table calls for a 60-day ceasefire and the release of 10 living hostages held in Gaza by Hamas militants and of 18 bodies. In turn, Israel would release about 200 long-serving Palestinian prisoners held by Israel.

Once the temporary ceasefire begins, the proposal is for Hamas and Israel to begin negotiations on a permanent ceasefire that would include the return of the remaining hostages. (Reuters)