The United States has put forward a new proposal that would secure the release of a handful of living hostages held by Hamas in exchange for a month-long extension of the Israel-Hamas ceasefire, a source familiar with the negotiations said.

The move came hours after Israel had proposed a temporary extension of the truce, though one with terms that Hamas is unlikely to accept.

Israeli Prime Minister Benjamin Netanyahu said Sunday that Israel would not allow any further humanitarian aid into Gaza.

Israel has imposed a block on all aid entering the Gaza Strip following the end of the first phase of the ceasefire deal. Prime Minister Benjamin Netanyahu's office issued a statement on Sunday morning confirming that Israel had blocked the entry of all goods into Gaza.

Israel has approved a US proposal to extend the truce in Gaza through the Muslim holy month of Ramadan and the Jewish Passover holiday in mid-April, the office of the Israeli prime minister has said.