U.S. and Arab mediators are working round-the-clock to hammer out a ceasefire deal between Israel and Hamas, sources close to the talks said, while in the Gaza Strip medics said Israeli strikes had killed 41 Palestinians on Thursday.

Efforts to strike a Gaza truce and hostage release deal between Israel and Hamas have repeatedly failed over key stumbling blocks, but recent negotiations have raised hope of an agreement.Hamas officials told AFP that the current framework for a deal would see the implementation of a ceasefire and the gradual release of hostages over three phases.

Informed sources told the Reuters news agency that a ceasefire agreement could be finalized in the coming days.

"Everybody should come home as soon as possible," Jimmy Miller, whose cousin was taken hostage by Hamas, said.

Long-running Gaza ceasefire talks are progressing, according to both Israeli and Hamas officials who have expressed fresh optimism around the possible end to the war in the Palestinian enclave. A Hamas spokesperson told Newsweek that progress on the talks was "positive and optimistic.

Israeli officials say a ceasefire in Gaza is a more realistic prospect than at any time in the past year, suggesting a long-awaited deal to free hostages and boost aid to the beleaguered territory could be close.

US president-elect Donald Trump also said he had a ‘very good talk’ with Israel’s prime minister Benjamin Netanyahu