Hamas says it has accepted a proposal from mediators to release one living American-Israeli hostage and the bodies of four dual-nationals, hostages who had died in captivity.

As Hamas on Friday offered to release American Israeli soldier Edan Alexander and the remains of four other hostages held in Gaza, Israel's prime minister called it psychological manipulation.

Hamas says it has accepted a proposal from mediators to release a living American Israeli hostage and the bodies of four dual nationals. Israel expresses immediate doubt.