Hamas said on Friday it had agreed to free an American-Israeli dual national if Israel begins a phase of ceasefire talks towards a permanent end to the war, but Israel dismissed the offer as "psychological warfare".

Hamas says it has accepted a proposal from mediators to release one living American-Israeli hostage and the bodies of four dual-nationals who had died in captivity.

The militant group did not immediately specify when the release of soldier Edan Alexander and the four bodies would take place.