US President Donald Trump said on Wednesday that a deal to end the war in Gaza was "very close" and that he might travel to Egypt this weekend, as his envoys joined talks in Egypt to try to seal a ceasefire and hostage-release agreement.

With Trump's 20-point plan appearing closer than any previous bid to halt the two-year-old conflict, delegations upgraded their presence at the indirect talks, launched on Monday in the Egyptian resort town of Sharm el-Sheikh.

Trump offered an upbeat assessment, saying a deal was almost done and that he may travel to the Middle East this weekend, possibly leaving as soon as Saturday, if an agreement is reached. He later clarified that he might go to Egypt and the trip likely would be before or just after hostages are released.

"I was just given a note by the secretary of state saying that we're very close to a deal in the Middle East, and they're going to need me pretty quickly," Trump said during a White House event.

It marked the most promising effort yet to end the war in Gaza, as Hamas on Wednesday handed over its lists of hostages and Palestinian prisoners to be freed in a swap with Israel.

Trump's son-in-law Jared Kushner and special envoy Steve Witkoff and Israeli Strategic Affairs Minister Ron Dermer, a close confidant of Prime Minister Benjamin Netanyahu, arrived and began participation in the negotiations, Israeli and Palestinian sources said.

Also joining the discussions was the prime minister of longstanding mediator Qatar, Sheikh Mohammed bin Abdulrahman al-Thani, according to Egyptian sources.

Despite the hopes raised for ending the war, crucial details are yet to be spelled out, including the timing, a post-war administration for the Gaza Strip and the fate of the Palestinian militant group Hamas.

In parallel with the Sharm el-Sheikh talks, Arab and other states will meet in Paris on Thursday to discuss Gaza's post-war transition, with Washington likely to be represented, diplomatic sources said.

Hamas said on Wednesday it had handed over its lists of hostages and Palestinian prisoners to be exchanged in a swap, and was optimistic about the talks so far.

The list of Palestinians Hamas wants freed is expected to include some of the most prominent prisoners ever jailed by Israel, whose release had been off limits in previous ceasefires.

According to a Palestinian source close to the talks, the list includes Marwan al-Barghouti, a leader of the Fatah movement, and Ahmed Saadat, head of the Popular Front for the Liberation of Palestine. Both are serving multiple life sentences for involvement in attacks that killed Israelis.

Hamas says the indirect negotiations were focused so far on three issues: halting the conflict, withdrawing Israeli forces from Gaza and the swap deal.

The group has so far refused to discuss Israel's demand that Hamas give up its arms, which the Palestinian source said Hamas would reject as long as Israeli troops occupy Palestinian land.

Within Gaza, Israel has dialled down its military campaign at Trump's behest, but it has not halted strikes altogether.

The Israeli military said its forces had killed several militants in Gaza City, Gaza's main urban hub, who it said were on their way to attack Israeli soldiers.

Gaza medical authorities reported eight people killed in Israeli strikes in the last 24 hours, the lowest toll for weeks. Daily death tolls had been around 10 times as high over the past month as Israeli forces advance on Gaza City. (Reuters)