Israeli hostage families on Saturday urged Israeli Prime Minister Benjamin Netanyahu to seal a deal that would bring the remaining hostages held in Gaza home, and asked US President Donald Trump to intervene in helping to facilitate that goal.

The nephew of Israeli hostage Avraham Munder, who died in captivity in Gaza, Zahiro Shahar Mor, said that Netanyahu had told the families a comprehensive deal was impossible, yet now he was telling the public that he wanted a comprehensive deal.

"This is yet another of his lies" he added and said that anyone who wanted a comprehensive deal would put one on the table.

He also called on Trump to intervene and "instruct Netanyahu to end the war and bring an end to the loss of life."

The statement came ahead of the weekly rally in hostages square where hundreds gathered calling for the end of the war and the release of all the hostages.

Netanyahu said on Thursday that Israel would begin immediate negotiations for the release of all hostages held in Gaza and an end to the nearly two-year-old war.

He made the comments to soldiers serving in Gaza and said he was meeting commanders to approve plans for capturing Gaza City and defeating Hamas.

On Wednesday, the military called up 60,000 reservists, in a sign that the government was pressing ahead with the plan despite international condemnation.

Calling up tens of thousands of reservists is likely to take weeks, giving time for mediators to attempt to bridge gaps over a new temporary ceasefire proposal that Hamas has accepted, but the Israeli government has yet to officially respond to.

The proposal calls for a 60-day ceasefire and the release of 10 living hostages being held in Gaza by Hamas militants and of 18 bodies.

In turn, Israel would release about 200 long-serving Palestinian prisoners held by Israel.

Israel says a total of 50 hostages remain in Gaza, with 20 of them still alive. (Reuters)