Hamas fighters holed up in the Israeli-held Rafah area of Gaza will not surrender to Israel, the group's armed wing says as it urges mediators to find a solution to a crisis that threatens the month-old ceasefire.

Sources close to mediation efforts told Reuters on Thursday fighters could surrender their arms in exchange for passage to other areas of the enclave under a proposal aimed at resolving the stalemate.

Egyptian mediators have proposed that, in exchange for safe passage, fighters still in Rafah surrender their arms to Egypt and give details of tunnels there so they can be destroyed, according to one of the sources, an Egyptian security official.

Sunday's statement from Al-Qassam Brigades held Israel responsible for engaging the fighters, who it said were defending themselves.

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