Hamas said it was studying on Saturday the latest Israeli counter proposal regarding a potential ceasefire in Gaza, a day after a delegation from mediator Egypt reportedly arrived in Israel in a bid to jump-start stalled negotiations.

The signs of fresh truce talks came alongside ongoing Israeli preparations for a military push into Gaza's southern city of Rafah and as spillover from the war led to continued attacks across the region.

"Today, the Hamas movement received the official Zionist occupation response to the movement's position, which was delivered to the Egyptian and Qatari mediators on April 13," Khalil al-Hayya, deputy head of Hamas's political arm in Gaza, said in a brief statement early Saturday.

"The movement will study this proposal, and upon completion of its study, it will submit its response."

Hamas had previously insisted on a permanent ceasefire, something rejected by Israel.

Egypt, Qatar and the United States have been unsuccessfully trying to seal a new truce deal in Gaza ever since a one-week halt to the fighting in November saw 80 Israeli hostages exchanged for 240 Palestinians held in Israeli prisons.

Several Israeli media outlets, citing unnamed officials, said Israel's war cabinet had discussed a new plan for a truce and hostage release ahead of the Egyptian delegation's visit.

There has been "noticeable progress in bringing the views of the Egyptian and Israeli delegations closer", said Al-Qahera News, which is linked to Egyptian state intelligence services.

The war in Gaza was also on the agenda for an international summit set to kick off in Saudi Arabia over the weekend.

The World Economic Forum special meeting, scheduled to begin in Riyadh on Sunday, will include a Gaza-focused session on Monday set to feature newly appointed Palestinian prime minister Mohammed Mustafa, Egyptian Prime Minister Mostafa Madbouly and Sigrid Kaag, the United Nations aid coordinator for the Gaza Strip.

"Discussions with European, American and regional counterparts on Gaza and the regional situation are planned in Riyadh," a diplomatic source said on Friday.

Witnesses in besieged Gaza reported fresh Israeli strikes overnight into Saturday around Rafah, the last urban centre Israeli ground forces have yet to enter.

Plans for an Israeli incursion into the city, which military leaders say is necessary to uproot Hamas battalions, have sparked opposition among the international community due to the presence of hundreds of thousands of displaced civilians seeking refuge there.

Senior Hamas official Ghazi Hamad told AFP on Thursday that such an operation "will undoubtedly threaten the negotiations" and show "that Israel is interested in continuing the war".

The war began with the unprecedented Hamas attack on October 7, which resulted in the deaths of about 1,170 people in Israel, mostly civilians, according to an AFP tally of Israeli official figures.

Israel's retaliatory offensive has killed at least 34,356 people in Gaza, mostly women and children, according to the Hamas-run territory's health ministry.

Israel estimates that 129 hostages are still being held by Hamas in Gaza, including 34 the military says are dead. (AFP)