Israeli Defense Minister Yisrael Katz told his US counterpart Lloyd Austin in a phone call on Wednesday that there is now a chance to reach an agreement to release all hostages held in the Gaza Strip, including US citizens, his office said in a statement.

Katz's office added: "Minister Katz updated his American counterpart on the developments in the hostage release negotiations, and said that there is now an opportunity to reach a new agreement that will allow the return of all hostages, including those who hold American citizenship."

US National Security Adviser Jake Sullivan arrives in Israel on Thursday, then visits Egypt and Qatar, in a last-ditch effort to push a ceasefire in the Gaza Strip ahead of President-elect Donald Trump's inauguration in six weeks.

Two sources familiar with the details told the Israeli Walla and American Axios websites that Sullivan will meet with Israeli leaders to discuss a number of issues, including the release of hostages, the ceasefire in Gaza, and the latest developments in Syria, as well as Lebanon and Iran. He will then travel to Cairo and Doha to meet with Egyptian and Qatari leaders to discuss mediation efforts.