Hamas has received a new American proposal aimed at breaking the stalemate in Gaza ceasefire negotiations.

Israeli and US sources tell Axios that the plan would involve Hamas releasing hostage Edan Alexander to build goodwill with the Trump administration, potentially gaining leverage to pressure Israel into a more comprehensive agreement later. In exchange, Trump would issue a statement calling for calm in Gaza and committing to resume broader ceasefire talks.

The proposal emerged after Steve Witkoff, Trump’s envoy, spoke with Qatar’s prime minister on Wednesday to develop a new formula after previous attempts failed. Witkoff subsequently briefed Israeli Minister for Strategic Affairs Ron Dermer about the arrangement.

However, internal divisions within Hamas are complicating matters, with leadership outside Gaza reportedly more receptive to negotiated solutions than Mohammed Sinwar, brother of slain Oct. 7 architect Yahya Sinwar, who has rejected similar proposals in the past. Egyptian mediators have taken a harder line, threatening to deport Hamas terrorists released in previous exchanges with Israel if the group continues refusing to release more hostages.

Meanwhile, Prime Minister Benjamin Netanyahu is warning to occupy parts of Gaza if the hostages aren’t released soon.

“The more Hamas continues in its refusal to release our hostages, the more powerful the repression we exert will be,” Netanyahu told a packed Knesset Plenum on Wednesday. “This includes seizing territory and it includes other things.”