The Israeli military cabinet has instructed the negotiating team to continue efforts to reach an agreement to release the hostages, Israeli media reported, citing refer to Prime Minister Benjamin Netanyahu's office.
The war cabinet meeting ended with a statement from the prime minister's office saying the high-level forum had instructed the Israeli negotiating team to "continue negotiations on the return of the hostages," the Jerusalem Post summarized.
The War Cabinet is understood to have held a four-hour meeting on Wednesday night.
Meanwhile, TV "Al Arabia" announced on Wednesday that Israel had agreed to terms for a Gaza ceasefire but then backtracked.
According to the TV channel, Israel has requested that all the hostages be released at the same time.
According to the report, the US has refused to guarantee Israel's compliance with the ceasefire.
At the same time, the media reported that Egypt refused any coordination with the Israeli Defense Forces in Rafah and opposed any possible Israeli military presence in Gaza in the future.
Meanwhile on Wednesday, the Egyptian government said it may completely withdraw from Gaza ceasefire talks.
"Attempts to question and insult Egypt's mediation efforts (...) will only further complicate the situation in Gaza and the entire region and may lead to Egypt withdrawing completely from its mediation in the current conflict", said the head of the Egyptian state information service Diya Rashwan.
Rashvan added that Cairo's involvement as a mediator was the result of "repeated requests and insistence" of Israel and the USA.
Rashwan's statement was made in response to a CNN story that cited well-informed sources as saying that Egypt changed the terms of the Gaza ceasefire agreement signed by Israel before handing it over to Hamas.
"Egyptian intelligence discreetly changed the terms of a ceasefire agreement Israel had already signed earlier this month, ultimately scuppering a deal that could have freed Israeli hostages and Palestinian prisoners and paved the way for a temporary an end to hostilities in Gaza," CNN claimed.
Rashvan called the report "fake" and "devoid of any information or facts".