Hostage relatives were hopeful on Monday after US President Donald Trump and Israeli Prime Minister Benjamin Netanyahu said they had agreed to a plan to end the war in Gaza, although it was unclear whether Hamas will accept their terms.

"I am more optimistic although I am still a bit afraid to be so optimistic," said Hana Cohen, aunt of hostage Inbar Hayman whose body is still held in Gaza. "I'm afraid of being disappointed again."

For many gathered in Tel Aviv on Monday night after a protest outside the US embassy, their optimism was tinged with caution.

"In the last two years, we learned that until the hostages cross the border they're not home," said Guy Goren, son of hostages Avner and Maya Goren, whose bodies are also still held in Gaza.

Trump on Monday laid out a 20-point plan for ending the Israel-Hamas war and establishing a post-war Gaza governance.

Trump’s plan would also establish a temporary governing board that would be headed by Trump and include former British Prime Minister Tony Blair.

Trump says Israel would have the “full backing” of the United States to take steps to defeat Hamas if it doesn’t accept the proposed peace deal.

While Hamas has said in the past that it would agree to step back from governing Gaza, the militant group has refused to disarm, something Netanyahu has long demanded as part of any long-term truce to end the war.

Netanyahu earlier on Monday extended a formal apology to his Qatari counterpart for a recent military strike targeting Hamas officials in the Gulf emirate that infuriated Arab leaders and triggered rare criticism by the US of Israel.

Netanyahu made the call to Qatar's prime minister, Sheikh Mohammed bin Abdulrahman Al Thani, as he met with Trump.

AP Video by Ami Bentov