Egypt makes new proposal to restore Gaza ceasefire deal, sources say

CAIRO (Reuters) -Egypt made a new proposal last week aimed at restoring the Gaza ceasefire deal, security sources told Reuters on Monday.

The proposal follows an escalation in violence after Israel resumed air and ground operations against Hamas last Tuesday, effectively ending a two-month period of relative calm.

The Egyptian plan suggests Hamas release five Israeli hostages each week, with Israel implementing the second phase of the ceasefire after the first week, the sources said.

Both the U.S. and Hamas agreed to the proposal, the security sources said, but Israel had not yet responded.

The sources said Egypt's proposal also includes a timeline for the release of all hostages in exchange for a timeline for Israel's full withdrawal from Gaza, backed by U.S. guarantees.

Hamas has accused Israel of breaking the terms of the January ceasefire agreement but has said it is still willing to negotiate a ceasefire and was studying proposals from U.S. President Donald Trump's special envoy, Steve Witkoff.

(Reporting by Ahmed Shalaby; Writing by Jana Choukeir, Editing by Alex Richardson, William Maclean)