Hamas said it’s willing to release all American-Israeli hostages, including one still alive, in a surprise move dismissed by both Israel and the US as unhelpful to negotiation efforts to end the war.

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

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