“We are negotiating under fire... We can see cracks beginning to appear” in what the group demanded in its negotiations, Netanyahu told a cabinet meeting.
A senior Hamas official stated on Saturday that the group had approved a new ceasefire proposal put forward by mediators and urged Israel to support it.
However, the details of the latest mediation efforts remain undisclosed.
“We are willing. Hamas must lay down its arms... Its leaders will be allowed to leave” from Gaza, he said.
Days after taking office, US President Donald Trump had announced a plan that would relocate Gaza's more than two million inhabitants to neighbouring Egypt and Jordan.
A fragile truce that had provided weeks of relative calm in the Gaza Strip collapsed on March 18 when Israel resumed its aerial bombardment and ground offensive in the Palestinian territory.
On Sunday, an Israeli air strike killed at least eight people in Gaza's Khan Yunis area, including five children, the territory's civil defence agency reported.
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