Hamas has agreed to a new Egyptian proposal to release 5 hostages, including the American-Israeli Edan Alexander, in exchange for a renewed ceasefire, a Hamas source tells CNN.

The Hamas militant group said Saturday it has accepted a new Gaza ceasefire proposal from mediators Egypt and Qatar, but Israel said it has made a counter-proposal in "full coordination" with the third mediator, the United States.

Hamas decided not to respond or engage with Israel's counter-proposal for a ceasefire in Gaza, an official told Reuters on Wednesday, affirming it is committed to the mediators' plan instead.