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 the more than two dozen hostages 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 and leaves 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. However, he stated that Netanyahu will have US backing to act decisively if Hamas does not agree to the plan.

Netanyahu echoed this sentiment, asserting that Israel will finish the job if Hamas rejects or fails to adhere to the plan.

British Prime Minister Sir Keir Starmer welcomed the proposal, urging all parties to collaborate with the US Administration to finalize the agreement and relieve the suffering in Gaza.

The five-step plan includes an immediate halt to hostilities, a freeze on battle lines, and the requirement for Hamas to disarm while ensuring economic development in Gaza.

According to the plan, for every Israeli hostage whose remains are released, Israel will release the remains of 15 dead Gazans, and full aid will be provided to Gaza upon accord with the plan.

The US also outlined its vision for Gaza governance, proposing a temporary technocratic, apolitical Palestinian committee overseen by a new international body led by Trump with contributions from international figures like former UK PM Tony Blair.

Blair praised the plan as bold and intelligent while emphasizing that it must be implemented for peace to be achieved.

The plan stipulates that Hamas must not participate in any governance roles, directly or indirectly.

Moreover, a senior Hamas official indicated to the BBC that while the group is open to evaluating proposals that could conclude the conflict, any agreement must prioritize Palestinian rights and ensure full Israeli withdrawal from Gaza.

As discussions unfold, the plan represents a potential pathway to decrease hostilities in a region plagued by ongoing violence and humanitarian crises, with at least 66,055 people having lost their lives in the conflict to date.