Prime Minister Benjamin Netanyahu is set to hold consultations on Saturday evening following the Israeli delegation's return from Gaza hostage deal talks in the Qatari capital of Doha.
Israel accused Hamas of deviating from the American proposal for a ceasefire extension after the terror organization announced on Friday that it had agreed to release American-Israeli hostage Edan Alexander from Gaza captivity.
Hamas also said it would return the remains of four deceased hostages with American citizenship: Omer Neutra, Itay Chen, Gadi Haggai, and Judy Weinstein Haggai. Israeli officials previously confirmed the deaths of all four hostages named by Hamas.
US special envoy to the Middle East Steve Witkoff dismissed Hamas's offer on Friday, warning the Palestinian terror organization that it could no longer play for time with a ceasefire and hostage deal.
Gaza hostage deal talks have 'failed,' Hamas official tells BBC Arabic
Earlier on Saturday, Hamas officials told BBC Arabic that discussions on the continuation of a Gaza hostage and ceasefire deal have failed.
Additionally, Dr. Tarek Fahmy, a professor of political science, told the BBC that despite a lack of movement in talks, he does not believe fighting will continue in the same capacity it did before the recent ceasefire.
Fahmy stressed he believed "there will be no resumption of the war, despite reports that Israel is preparing to launch qualitative strikes" after the ceasefire expires.
Talks continued throughout the weekend as a Hamas delegation led by Khalil al-Khayya visited Cairo for updates on the negotiations in Qatar.
Amichai Stein contributed to this report.