DUBAI/CAIRO, July 6

Hamas has accepted a US proposal to begin talks on releasing Israeli hostages, including soldiers, 16 days after the first phase of an agreement aimed at ending the Gaza war, a senior Hamas source told Reuters on Saturday.

The militant Islamist group has dropped its demand that Israel should first commit to a permanent ceasefire before signing the agreement, and would allow negotiations to achieve that throughout the six weeks of the first phase, said the source on condition of anonymity, adding that the talks were private.

A Palestinian official close to the internationally mediated peace efforts said the proposal could lead to a framework agreement if embraced by Israel and would end the nine-month war between Israel and Hamas in Gaza.

A source in Israel's negotiating team said there was now a real chance of achieving agreement. That was in sharp contrast to past instances in the nine-month-old war in Gaza, when Israel said conditions attached by Hamas were unacceptable.

A spokesperson for Israeli Prime Minister Benjamin Netanyahu did not immediately respond to a request for comment on Saturday, the Jewish Sabbath. On Friday his office said talks would continue next week and emphasised that gaps between the sides still remained. — Reuters