The proposal follows an escalation in violence after Israel resumed air and ground operations against Hamas last Tuesday, effectively ending a two-month period of relative calm.
The Egyptian plan suggests Hamas release five Israeli hostages each week, with Israel implementing the second phase of the ceasefire after the first week, the sources said.
Both the U.S. and Hamas agreed to the proposal, the security sources said, but Israel had not yet responded.
The sources said Egypt's proposal also includes a timeline for the release of all hostages in exchange for a timeline for Israel's full withdrawal from Gaza, backed by U.S. guarantees.
Hamas has accused Israel of breaking the terms of the January ceasefire agreement but has said it is still willing to negotiate a ceasefire and was studying proposals from U.S. President Donald Trump's special envoy, Steve Witkoff.
(Reporting by Ahmed Shalaby; Writing by Jana Choukeir, Editing by Alex Richardson, William Maclean)

A Palestinian man inspects the damage inside the surgical building of the Nasser Hospital, a day after it was targeted by Israeli strikes, in Khan Yunis, southern Gaza Strip, 24 March 2025. Israeli forces resumed airstrikes on Gaza on 18 March, ending a ceasefire that had been in place since 19 January. More than 50,000 Palestinians have been killed in the Gaza Strip, according to the Palestinian Ministry of Health, since Israel launched a military campaign in the strip in response to a cross-border attack led by the Palestinian militant group Hamas on 07 October 2023, in which about 1,200 Israelis were killed and more than 250 taken hostage. EPA-EFE/HAITHAM IMAD
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