An Israeli official said Hamas had agreed to a ceasefire and hostage return proposal shared by Qatari negotiators.
But Israeli Prime Minister Benjamin Netanyahu's office said shortly afterward that Hamas had not yet given a response.
A Hamas official who declined to be named also said that the group had not yet given a written response to the proposal.
Officials from mediators Qatar, Egypt and the US as well as Israel and Hamas said on Tuesday that an agreement for a truce in the besieged enclave, the release of hostages held there and the freeing of Palestinian prisoners detained in Israel was closer than ever.
There was no comment from Hamas on Wednesday but a Palestinian official close to the talks said: "I am hopeful a deal can be signed tonight, latest tomorrow."
A senior Hamas official told Reuters late on Tuesday it had not yet delivered its response because it was still waiting for Israel to submit maps showing how its forces would withdraw from the Gaza Strip.
A proposed truce includes a gradual withdrawal of Israeli forces from the centre of the Gaza Strip. (AP PHOTO)
During months of on-off talks to achieve a truce, both sides have previously said they were close to a ceasefire only to hit last-minute obstacles.
The broad outlines of the current deal have been in place since mid-2024.
If successful, the planned phased ceasefire could halt fighting that has left much of the Gaza Strip in ruins, displaced most of the enclave's pre-war population of 2.3 million and is still killing dozens of people a day.
That in turn could ease tensions across the wider Middle East where the war has fuelled conflict in the occupied West Bank, Lebanon, Syria, Yemen and Iraq and raised fears of all-out war between Israel and Iran.
Israel launched its assault on the Gaza Strip after Hamas-led fighters stormed across its borders on October 7, 2023, killing 1200 people and taking more than 250 hostages, according to Israeli tallies.
Since then, Israeli forces have killed more than 46,700 Palestinians in Gaza, according to health officials in the enclave.
Palestinians were once again hoping the latest talks would deliver some relief from Israeli air strikes and ease a deep humanitarian crisis.
"We are waiting for the ceasefire and the truce. May God complete it for us in goodness, bless us with peace and allow us to return to our homes," said Amal Saleh, 54, a Gazan displaced by the war.
"Even if the schools are bombed, destroyed and ruined, we just want to know that we are finally living in peace."
Under the plan, Israel would recover about 100 remaining hostages and bodies from among those captured in the October 2023 Hamas-led attacks on southern Israel that precipitated the war.
In return it would free Palestinian detainees held in Israeli jails.
The latest draft is complicated and sensitive.
Under its terms, the first steps would feature a six-week initial ceasefire.
The plan also includes a gradual withdrawal of Israeli forces from central Gaza and the return of displaced Palestinians to the north of the enclave.
The deal would also require Hamas to release 33 Israeli hostages along with other steps.
The draft stipulates negotiations over a second phase of the agreement to begin by the 16th day of phase one.
Phase two includes the release of all remaining hostages, a permanent ceasefire and the complete withdrawal of Israeli soldiers.
Even if the warring sides agree to the deal on the table, that agreement still needs further negotiation before there is a final ceasefire and the release of all the hostages.
If it all goes smoothly, the Palestinians, Arab countries and Israel still need to agree on a vision for post-war Gaza, a massive task involving security guarantees for Israel and billions of dollars in investment for rebuilding.
Despite the talks on a ceasefire, the Israeli military, the Shin Bet internal intelligence agency and the air force attacked about 50 targets throughout the enclave over the last 24 hours, Shin Bet and the military said in a statement on Wednesday.
Israeli strikes killed at least 13 Palestinians across the enclave.
Those included seven people who were in a school sheltering displaced families in Gaza City and six others killed in separate air strikes on houses in Deir al-Balah, Bureij camp and Rafah, medics said.
