Hamas' Gaza chief said the group was ready to immediately negotiate a deal to swap all hostages for an agreed number of Palestinians jailed by Israel as part of a broader deal to end the war in the enclave.
In a televised speech, Khalil Al-Hayya, who leads the Hamas negotiating team for indirect talks with Israel, said the group refused an interim truce deal.
"Netanyahu and his government use partial agreements as a cover for their political agenda, which is based on continuing the war of extermination and starvation, even if the price is sacrificing all his prisoners (hostages). We will not be part of passing this policy," said Hayya, referring to Israeli Prime Minister Benjamin Netanyahu.
Egyptian mediators have been working to revive the January ceasefire agreement that halted fighting in Gaza before breaking down last month, but there has been little sign of progress with both Israel and Hamas blaming each other for the lack of a deal.
The latest round of talks on Monday in Cairo to restore the ceasefire and free Israeli hostages ended with no apparent breakthrough, Palestinian and Egyptian sources said.
Hayya said that Hamas accepted a proposal by the mediators, Qatar and Egypt, to release some hostages in return for Palestinians jailed by Israel and begin talks on implementing the second phase of the ceasefire agreement that includes ending the war and Israeli forces' withdrawal from Gaza.
He accused Israel of offering a counterproposal with "impossible conditions."