Hamas has agreed to release all remaining Israeli hostages, both dead and alive, under the terms of Donald Trump's proposed peace plan.
The terror group on Friday signalled a readiness to immediately enter negotiations to discuss details of the deal, which includes proposals to hand over administration of the enclave.
In a statement, Hamas said it would release the hostages but said it would seek negotiations over many of the deal's other terms.
Mr Trump has not said whether the terms would be subject to negotiation, as Hamas is seeking.
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Its agreement comes just hours after the US President gave the terror group an ultimatum to accept his terms or "all hell" would break loose.
A senior Hamas official has told Al Jazeera that the handing over of hostages in Gaza within 72 hours is "theoretical and unrealistic".
They said that issues relating to the future of Gaza will be discussed within a comprehensive Palestinian national framework, in which Hamas will be involved.
Qatari mediators confirmed they have received Hamas' response to Mr Trump's Gaza plan.
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Hamas has agreed to Mr Trump's Gaza plans
| REUTERSThe senior official told Al Jazeera Hamas will enter into negotiations on all issues relating to the group and its arms, but said it will not disarm before the Israeli "occupation" ends.
Mr Trump told Hamas it had until 6pm deadline this Sunday to accept the terms of the proposed deal.
"An agreement must be reached with Hamas by Sunday Evening at 6pm, Washington DC time, every country has signed on," he wrote on Truth Social.
"If this last chance agreement is not reached, all hell, like no one has ever seen before, will break out against Hamas. There will be peace in the Middle East one way or the other."
The US President released Hamas' statement on social media
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The White House did not immediately respond to a request for comment on Hamas' response to the proposal, which is backed by Israel as well as Arab and European powers.
In its statement, Hamas said it appreciates Arab, Islamic, and international efforts, as well as the efforts of US President Donald Trump.
It went on to reiterate its agreement to hand over the administration of the Gaza Strip to an independent Palestinian body.
The President and Israeli Prime Minister Benjamin Netanyahu unveiled the 20-point proposal at the White House on Monday.
Hamas said that the handing over of hostages in Gaza within 72 hours is 'theoretical and unrealistic'
| REUTERSIsrael has agreed to the terms, which include an immediate ceasefire, release of all hostages, the disarmament of Hamas and a guarantee that no one will be forced to leave Gaza.
There is also a governing "peace panel" that includes several senior figures, including former Prime Minister Sir Tony Blair.
The deal would see Israel halt all of its offensive and withdraw from much of the territory.
Hundreds of Palestinian prisoners would be released, and Israel would allow an influx of humanitarian aid.
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