Israeli Foreign Minister Gideon Sa'ar claimed that there are signs of progress in a prisoner exchange deal with Hamas.

"There are signs of progress in the prisoner return deal, but I cannot provide more details now," Sa'ar said in statements he made during a conference held by the Hebrew newspaper Israel Hayom.

"There are indications that Hamas will be more flexible under the circumstances that have arisen," he added, referring to the ceasefire agreement in Lebanon between Hezbollah and Israel, without elaborating further.

"From the Israeli government's point of view, there is a desire to go to such a thing and I hope we can move forward," Sa'ar continued.

He continued: "Israel's basic position is that Hamas will not be able to control Gaza (the day after the war), but we are obligated to try to make progress on the prisoners' issue."

On Saturday, a Hamas delegation headed by prominent leader Khalil al-Hayya arrived in the Egyptian capital, Cairo, to meet with Egyptian intelligence chief Hassan Rashad, according to the Hebrew newspaper Yedioth Ahronoth.

The newspaper reported on Sunday that "the Egyptians are trying to promote reconciliation between Hamas and Fatah, and at the same time are pushing for a deal to return the prisoners, and according to reports they also sent a delegation to Israel last week."

She added, citing media reports, that Hamas is prepared to accept a "gradual agreement" similar to the ceasefire agreement reached with Hezbollah in Lebanon, meaning a gradual Israeli withdrawal from Gaza, not an immediate one as Hamas has demanded in the past.

The prisoner exchange negotiations faltered due to Israeli Prime Minister Benjamin Netanyahu’s insistence on “continuing control over the Philadelphi Corridor on the border between Gaza and Egypt, and the Rafah crossing in Gaza, and preventing the return of Palestinian faction fighters to northern Gaza (by inspecting returnees through the Netzarim corridor in the middle of the Strip).”

While Hamas insists on a complete Israeli withdrawal from the Strip and a complete cessation of war to accept any agreement.

Israel estimates that there are 101 prisoners being held in the Gaza Strip, while Hamas announced the killing of dozens of prisoners in random Israeli raids.