Hamas says it will only release an American-Israeli and the bodies of four other hostages if Israel implements the existing ceasefire agreement in the Gaza Strip, calling it an "exceptional deal" aimed at getting the truce back on track.

The militant group did not immediately specify when the release of soldier Edan Alexander and the four bodies would take place.

Hamas said on Friday it agreed to release an American-Israeli dual national, believed to be the last living American hostage held in Gaza, after receiving a proposal from mediators to continue negotiations on the second phase of a ceasefire deal.