HOSTAGE talks could see up to 80 Israelis released in return for a brief halt in fighting.
The humanitarian pause would last up to four days so fuel can be delivered to Gaza, say sources.
A number of Palestinian women and children would also be released from Israeli jails.
A source said: “The talks are on a knife edge. There have been false dawns.
“One problem is the hostages are split. About 180 are held by Hamas, 40 by Islamic Jihad and the rest by gangs.”
So far just four Israelis have been freed.
Soldier Ori Megidish, 19, was rescued in a daring raid.
Another source close to hostage families said: “We’ve gone from talks about 12 being released, to 100 and now 80. But things are looking brighter.”
Israel PM Benjamin Netanyahu said tonight: “Our hearts are always with the hostages and their families.
“We have been working relentlessly for their release.”
US President Joe Biden said he believed a deal would happen but could not go into details.
He assured the families of hostages: “Hang in there, we’re coming.”
Today, some of the families marched from Tel Aviv to Mr Netanyahu’s office in Jerusalem.
Yuval Heran, whose sister Adi Shoham and family were taken, said: “Every moment we live this pain and I can’t sit and wait.”