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, hostages who had died in captivity.

Hamas said it’s willing to release a living American hostage and four bodies of other dual nationals from Gaza, a surprise move the group said would advance ceasefire talks, though was treated with suspicion by Israel.