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Hamas has issued a new cease-fire proposal amid its war with Israel that includes an exchange of hostages in Gaza for Palestinian prisoners, according to a report.

The terror group presented the Gaza cease-fire proposal to U.S., Qatar and Egypt mediators on Friday, Reuters reported. It includes the release of Israeli women, children, elderly and sick hostages in exchange for the release of 700 to 1,000 Palestinian prisoners.

Israeli Prime Minister Benjamin Netanyahu’s office appeared to reject the Hamas proposal, saying it was based on "unrealistic demands," per the report.

The new proposal comes a week after negotiations to broker an agreement concluded without a breakthrough.

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Smoke over Israel

Hamas' proposed cease-fire plan includes exchanging Israeli women, children, elderly and sick hostages for the release of 700 to 1,000 Palestinian prisoners, Reuters reported. (REUTERS/Bassam Masoud)

Hamas has, so far, refused to release all the estimated 100 hostages in its custody, and has kept the remains of around 30 who have died. They are demanding Israel end its ground offensive and withdraw from Gaza.

Hamas also insisted any agreement should end the war.

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Netanyahu Israel

Israeli Prime Minister Benjamin Netanyahu allegedly described the demands in Hamas' latest proposal as "unrealistic." (Abir Sultan/Pool Photo via AP)

Mediators with the U.S., Qatar and Egypt have attempted to narrow differences between Israel and Hamas as the humanitarian crisis in Gaza, especially Rafah, continues to worsen.

In February, a draft proposal rejected by Israel included a 40-day pause in all military operations and the exchange of Palestinian prisoners for Israeli hostages. The proposed ratio was 10 to one.

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Biden Hamas

President Biden, right, and other world leaders have called for a peaceful resolution between Israel and Hamas multiple times in recent months as the war draws on. (Getty Images)

According to the latest proposal, Hamas said it would agree on a date for a permanent cease-fire after the initial exchange of hostages and prisoners.

The Israel-Hamas war was triggered by a Hamas-led attack on southern Israeli towns on Oct. 7. As the war continues past its fifth month, President Biden and other world leaders have repeatedly called for peace in the region and have urged a two-state solution.

Reuters contributed to this report.