Jerusalem/IBNS: Israel Sunday said it endorsed a proposal to temporarily extend the truce in Gaza as a bridging measure after the first phase of its ceasefire with Hamas is all set to end, media reports said.

The proposal to extend the truce, put forward by US President Donald Trump's Middle East envoy Steve Witkoff, would cover Ramzan, due to end in late March, according to a statement from the Israeli prime minister's office released just after midnight.

The first phase of a ceasefire deal between Israel and Palestinian group Hamas was set to expire over the weekend without any certainty as to the second phase.

Negotiations have so far been inconclusive, with hostages still held in Gaza and the lives of more than two million Palestinians hanging in the balance.

According to the Israeli statement, the extension would see half of the hostages still in Gaza released on the day the deal comes into effect, with the rest to be released at the end if agreement is reached on a permanent ceasefire.

There was no immediate response from Hamas, which earlier rejected the idea of an extension.

United Nations head Antonio Guterres has warned against a "catastrophic" return to war and said that a "permanent ceasefire and the release of all hostages are essential to preventing escalation and averting more devastating consequences for civilians".

Israeli officials held ceasefire negotiations with Egyptian, Qatari and American mediators in Cairo last week.

However, even till Saturday there was no sign of consensus as Muslims in Gaza marked the first day of Ramadan with coloured lights brightening war-damaged neighbourhoods.

A senior Hamas official told AFP the Palestinian militant group was prepared to release all remaining hostages in a single swap during the second phase.

"Hamas will not be happy to drag on phase one, but it doesn't really have the capacity to force Israel to go on to phase two," Max Rodenbeck, an analyst for the International Crisis Group, told AFP.