Two sources familiar with the truce talks have told AFP a tentative deal includes a five-day truce, comprised of a ceasefire on the ground and limits to Israeli air operations over southern Gaza.
In return, between 50 and 100 prisoners held by Hamas and Islamic Jihad – a separate Palestinian militant group – would be released.
They would include Israeli civilians and captives of other nationalities, but no military personnel.
Under the proposed deal, some 300 Palestinians would be released from Israeli jails, among them women and children.
The White House said the negotiations were in the “endgame” stage, but refused to give further details, saying it could jeopardise a successful outcome.