The Palestinian militant group said in a statement Friday it has accepted a new proposal by mediators of the Israel-Hamas ceasefire, agreeing to release one living American-Israeli hostage and the bodies of four other hostage dual nationals who died in captivity.

Hamas says it has accepted a proposal from mediators to release one living American-Israeli hostage and the bodies of four dual-nationals.

Hamas said on Friday it was ready to free an Israeli-American hostage and the remains of four others, after the Palestinian militants and Israel resumed indirect Gaza ceasefire negotiations. During the initial six-week phase of the ceasefire,

The militant group did not immediately specify when the release of soldier Edan Alexander and the four bodies would take place.

Hamas said on Friday it agreed to release an American-Israeli dual national, believed to be the last living American hostage held in Gaza, after receiving a proposal from mediators to continue negotiations on the second phase of a ceasefire deal.

Hamas said on Friday it had agreed to free an American-Israeli dual national if Israel begins a phase of ceasefire talks towards a permanent end to the war, but Israel dismissed the offer as "psychological warfare".