US AND ARAB mediators made significant progress overnight toward brokering a ceasefire and the release of hostages in Gaza but a deal has not been signed off yet, officials said.

Three officials acknowledged progress has been made and said the coming days would be critical for ending more than 15 months of fighting that has destabilised the Middle East. 

One of the three officials and a Hamas official said there were still a number of hurdles to clear.

One person familiar with the talks said there had been a breakthrough overnight and that there was a proposed deal on the table.

Israeli and Hamas negotiators will now take it back to their leaders for final approval, the person said.

The person said mediators from the Gulf country of Qatar had put renewed pressure on Hamas to accept the agreement, while President-elect Donald Trump’s envoy, Steve Witkoff, was pressing the Israelis.

Witkoff recently joined the negotiations and has been in the region in recent days.

The person said the mediators had handed off the draft deal to each side and that the next 24 hours would be pivotal.

An Egyptian official said there had been good progress overnight but that it would likely take a few more days and that the sides were aiming for a deal before Trump’s 20 January inauguration.

A third official said the talks were in a good place but had not been wrapped up. That official also assessed that a deal was possible before the inauguration.

A Hamas official, however, said a number of contentious issues still need to be resolved, including an Israeli commitment to ending the war and details about the withdrawal of Israeli troops and the hostage-prisoner exchange.

The Egyptian official confirmed that those issues were still being discussed.