Prime Minister Anthony Albanese has welcomed a major development in the US-backed peace deal proposal for Gaza after Hamas agreed to release all Israeli hostages, both alive and dead.

US President Donald Trump earlier this week said a peace deal was "beyond very close" to being reached as Israeli Prime Minister Benjamin Netanyahu agreed to back a 20-point proposal to end the conflict in Gaza.

Among the stipulations in the proposal was the release of Israeli hostages in Gaza - which Hamas has announced its "approval" of in a Telegram statement.

The statement, which was shared by Trump to social media on Saturday morning, said the terrorist group affirmed its "readiness to immediately enter into negotiations through the mediators" in discussing details of the plan.

Mr Albanese said A

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