GAZA -- Hamas announced on Friday that it has submitted its response to US President Donald Trump's Gaza peace proposal to regional and international mediators, saying it has agreed in principle to release all Israeli hostages, both living and deceased.

In a press statement, the Palestinian armed group also agreed to transfer the administration of Gaza to a Palestinian body of independent technocrats, formed through national consensus and supported by Arab and Islamic countries.

According to the statement, other issues raised in the US proposal concerning Gaza's future and the broader rights of the Palestinian people would be addressed within a collective Palestinian framework, in line with relevant international laws and resolutions.

Hamas also stated that the release of all Israeli hostages will be based on the exchange framework outlined in Trump's proposal and expressed its readiness to begin immediate negotiations through mediators to discuss the implementation details.

The group said it values Arab, Islamic, international, and US efforts aimed at ending the ongoing conflict in the Gaza Strip, allowing the entry of humanitarian aid, preventing the displacement of Palestinians, and rejecting the reoccupation of the enclave.

Earlier in the day, Trump announced that he would set a Sunday evening deadline for Hamas to respond to the US peace proposal.

Trump and Israeli Prime Minister Benjamin Netanyahu said on Monday they have agreed to a 20-point plan proposed by Washington to end the conflict in Gaza.

The US-proposed plan combines a ceasefire-for-hostages deal, phased Israeli withdrawal, and international oversight on Gaza's reconstruction and governance after the end of the conflict.

Under the ceasefire terms, Israel would halt military actions and pull back to the agreed lines. Hamas, within 72 hours of Israel's public acceptance, must release all remaining hostages, living or deceased. In return, Israel pledges to free select prisoners and detainees, while disarmed Hamas members pledging peaceful coexistence could receive amnesty or a safe exit.