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The Palestinian Hamas group may drop some key demands in exchange for a ceasefire deal in Gaza, including the withdrawal of Israeli forces from the enclave, the New York Times cited US officials as saying.

Hamas has long conditioned the pullout of Israeli soldiers from the Gaza Strip in any deal. , some US officials say the group might drop this demand and move forward with an agreement deemed acceptable by Tel Aviv.

But "Israel did not appear to be interested in concessions", according to Western officials.

Some observers believe the Israel-Hezbollah ceasefire in Lebanon could encourage a deal to be reached in Gaza, while others remain sceptical.

Israel has once again shifted its focus to the Gaza Strip, while at the same time pushing towards negotiations to release remaining captives, The Jerusalem Post newspaper said.

There are believed to be around 100 captives still being held by Hamas in Gaza, some of whom are dead. 

Hamas wants to swap these captives for some of the thousands of Palestinians held by Israel, as occurred during a one-week truce in November last year.

An Egyptian security delegation headed to Israel on Thursday for ceasefire talks, and a Hamas delegation will reportedly head to Cairo, Israel’s Kan broadcaster said.

As well as the US and Qatar, Egypt is another key mediator in the negotiations.

Israeli Prime Minister Benjamin Netanyahu said Thursday that there was now an opportunity to reach a prisoner swap deal with Hamas after the change of circumstances in the Gaza war.

In an interview with the Israeli Channel 14, he said Israel was ready for a ceasefire "at any moment" in Gaza, but without ending the war entirely.

He believes that after the killing of Hamas' Gaza leader Yahya Sinwar last month and the separation of the Lebanon and Gaza fronts, the terms of a swap deal were now in Israel’s favour.

A Wednesday article by the New York Times said Netanyahu "cannot compromise with Hamas because doing so might collapse his ruling coalition, forcing early elections."

Netanyahu, as well as his former defence minister Yoav Gallant, were slapped with International Criminal Court arrest warrants earlier this month over alleged war crimes in Gaza, where more than 44,000 people have been killed by the nearly 14-month offensive, most of them civilians.