Israel and Hamas have reportedly agreed a ceasefire deal to end the fighting in Gaza.

The remaining Israeli hostages still held in the Palestinian territory will also be released as part of the agreement, which was struck following days of negotiations.

Israel’s prime minister Benjamin Netanyahu said the deal had not yet been finalised, but could be within hours.

His office said Hamas had “caved in at the last minute”, paving the way for a ceasefire agreement to end the 15-month long conflict.

Donald Trump quickly tried to claim credit for the breakthrough, which comes just days before his inauguration as US president.

He said: “This EPIC ceasefire agreement could have only happened as a result of our Historic Victory in November, as it signalled to the entire World that my Administration would seek Peace and negotiate deals to ensure the safety of all Americans, and our Allies. I am thrilled American and Israeli hostages will be returning home to be reunited with their families and loved ones. 

“With this deal in place, my National Security team, through the efforts of Special Envoy to the Middle East, Steve Witkoff, will continue to work closely with Israel and our Allies to make sure Gaza NEVER again becomes a terrorist safe haven.

“We will continue promoting PEACE THROUGH STRENGTH throughout the region, as we build upon the momentum of this ceasefire to further expand the Historic Abraham Accords. This is only the beginning of great things to come for America, and indeed, the World”

Lib Dem leader Ed Davey said: “The announcement of a ceasefire is, at last, a moment of hope after many months of darkness and despair for the region. 

“As this ceasefire comes into effect, Palestinians will hope that the killing will now stop. Israeli hostages will finally be returned to their loved ones again after being held in captivity for fifteen months. The work of flooding Gaza with the aid which it has desperately needed for months must begin in earnest. 

“Now, it is incumbent on the UK and the entire international community to do all it can to ensure that this ceasefire does not turn out to be a temporary truce. Otherwise we will not be able to get the remaining hostages home and finally alleviate the humanitarian crisis in Gaza. 

“We must look back on this moment as the first step on the road to a lasting peace. That two-state solution - with a recognised Palestinian state based on 1967 borders - is the only way to deliver the dignity and security which Israelis and Palestinians deserve.”

Helen McEachern, chief executive ofCare International UK, said it was “just the first step in stemming the overwhelming tide of suffering.”

She said: “A ceasefire will offer respite from the relentless bombardment imposed by Israeli authorities, and every effort must now be made to ensure it is sustained and made permanent.”