US President Donald Trump and Israeli Prime Minister Benjamin Netanyahu say they have agreed on a new peace plan for Gaza and have warned Hamas to accept it.

The plan proposes an immediate end to military operations, with Hamas releasing 20 living Israeli hostages and the remains of over two dozen who are believed to be dead within 72 hours, in exchange for hundreds of detained Gazans.

A Palestinian source familiar with the ceasefire negotiations told the BBC that Hamas officials have been given the White House's 20-point proposal.

It demands that Hamas will have no role in governing Gaza, leaving the door open for an eventual Palestinian state.

Speaking at a news conference following talks at the White House, Trump called the plan a historic day for peace and stated that Netanyahu will have US backing to proceed if Hamas does not comply.

Netanyahu declared that Israel will finish the job should Hamas reject or fail to implement the plan.

The proposal intends to initiate a ceasefire and suggests freezing existing battle lines until conditions are met for a phased withdrawal from military presence in Gaza.

Moreover, the proposal mandates the disarmament of Hamas and the destruction of its weapon production facilities. For every Israeli hostage released, Israel will reciprocate by releasing the remains of fifteen dead Gazans.

Once the hostages are exchanged, full humanitarian aid will be dispatched to Gaza.

The US plan also details a transitional governance structure for Gaza led by a technocratic, apolitical Palestinian committee under supervision of a new international body co-headed by Trump and former UK PM Tony Blair.

This plan comes amidst heightened tensions, with at least 66,055 casualties reported in Gaza since October 2023, and a stark warning from the UN regarding the famine in the region. While the plan outlines frameworks for rebuilding and future governance, Hamas's acceptance remains critical for its realization.