The Palestinian prime minister says it's unacceptable for any entity other than the Palestinian Authority to run the Gaza Strip in the future.

The Palestinian Authority must be the sole governing power in Gaza after the war, Palestinian Prime Minister Mohammad Mustafa said on Wednesday, as expectations grew that a deal to halt fighting and start returning Israeli hostages was near.

Israeli Prime Minister Benjamin Netanyahu's office denied on Wednesday that Hamas had agreed to the Gaza ceasefire proposal from Qatari mediators, after an Israeli official said the Palestinian militant group had given its approval.

The ceasefire announced between Israel and Hamas gives hope to families of hostages and war-weary Palestinians — but their nightmare is far from over.

Israelis holding placards with the names and faces of hostages held in Gaza embraced in Tel Aviv while Palestinians in Khan Younis cheered amid reports of a deal that would pause fighting and see the release of both Israelis captives and Palestinians prisoners.

After months of deadlock, Israel and the militant group Hamas reached a fresh Gaza ceasefire and hostage release deal.