On Thursday, Mr Netanyahu and his wife Sara met some families who have been notified that their loved ones are dead.

“We are committed to returning everyone, all 120 hostages – living and deceased. Even if this is in stages, we will not give up on anyone,” he said.

As negotiators struggled to find a compromise on Gaza, fighting continued in the southern Gaza city of Rafah, as well as other areas across the enclave.

At least 38 Palestinians were killed as Israeli troops engaged in close-quarter combat with Hamas militants, residents and Israel’s military said.

Residents said the Israelis appeared to be trying to complete their capture of Rafah, which borders Egypt and has been the focus of an Israeli assault since early May.

Meanwhile, hostilities between Israel and the Lebanon-based terror group Hezbollah are escalating and creating fears of a regional war.

On Tuesday, the Israel Defense Forces (IDF) said plans for an attack in southern Lebanon had been approved, adding that steps had been taken to “accelerate readiness in the field”.

Israeli officials have told the US they are planning to shift resources from southern Gaza to northern Israel to prepare for a possible offensive, reported CNN, the US news channel.