Hamas said on Friday it had agreed to free an American-Israeli dual national if Israel begins a phase of ceasefire talks towards a permanent end to the war, but Israel dismissed the offer as "psychological warfare".

The offer to release the American hostage appears to be an effort to pressure Israel into starting discussions over a second phase to the ceasefire in Gaza.

Hamas says it has accepted a proposal from mediators to release a living American Israeli hostage and the bodies of four dual nationals. Israel expresses immediate doubt.