The US-drafted peace plan to end the war in Gaza will continue discussions in Sharm el-Sheikh, Egypt, it has been reported.

The indirect talks are said to be aimed at reaching a final agreement on the peace plan.

Egyptian and Palestinian leaders told the BBC that the talks were being held to "pave the way" for the release of Israeli hostages and Palestinian prisoners.

Israeli Prime Minister Benjamin Netanyahu said he hoped the hostages would be released "in the coming days."

"We have a good chance of reaching an agreement. It will be a lasting agreement," US President Donald Trump told reporters at the White House.

While Hamas has said it partially agrees with the peace plan, no agreement has been reached on disarmament and the future administration of Gaza.

On the second day of the talks, the leaders of Egypt and Qatar will hold talks with Israel and Hamas.