Israel's war cabinet may discuss on Monday a proposal presented by Cairo for a truce to end the war, Israeli media reported, citing unnamed government officials.

The proposal puts forward three phases leading to a possible end of the conflict.

The first phase would involve a two-week ceasefire, subject to extension, which would see the release of 40 Israeli hostages, namely women, children and elderly men, in exchange for some 120 Palestinian prisoners. 

The second phase would center around Cairo-hosted talks to end the division between the Palestinian factions Fatah — which runs the Israeli-occupied West Bank — and Hamas, which rules the Gaza Strip. 

Talks are then supposed to lead to the formation of a technocratic government to oversee humanitarian aid and Gaza reconstruction efforts, and eventually pave the way for elections.

The third phase would focus on a full cease-fire and comprehensive deal to release Israeli hostages and Palestinian prisoners along with a full Israeli military withdrawal from the Gaza Strip. Under the deal, those internally displaced by the war would be allowed to go back to their homes.

The United Nations reports that close to 2 million people have been displaced in Gaza and around 40% of all housing has been destroyed by Israeli bombardment. 

It is still unclear how the deal will be perceived by the Israeli government which has said its goal is to wipe out Hamas and keep military control over the enclave after the war.

Leaders of Hamas have visited Egypt during the past few days. Cairo has been involved in mediation since the start of the war alongside Qatar.