US President Donald Trump said on Saturday that Israel agreed to an initial withdrawal line in Gaza, a key step toward a ceasefire and the beginning of a long-awaited hostage and prisoner exchange with Hamas.

"After negotiations, Israel has agreed to the initial withdrawal line, which we have shown to, and shared with, Hamas.

"When Hamas confirms, the Ceasefire will be immediately effective, the Hostages and Prisoner Exchange will begin, and we will create the conditions for the next phase of withdrawal, which will bring us close to the end of this 3,000 year catastrophe," Trump said on Truth Social.

Earlier, Trump urged the Palestinian group Hamas to act swiftly in ongoing hostage release and peace negotiations in Gaza.

"I appreciate that Israel has temporarily stopped the bombing in order to give the Hostage release and Peace Deal a chance to be completed. Hamas must move quickly, or else all bets will be off," Trump said on Truth Social.

His remarks came a day after Hamas announced its willingness to release all Israeli captives, alive and dead, and to hand over Gaza’s administration to an independent Palestinian authority composed of technocrats. However, it stressed that the enclave’s future and Palestinian rights must be addressed within a broader national Palestinian framework.

On Friday, Trump gave Hamas until 6 pm Washington time (2200GMT) on Sunday to approve his 20-point plan.