Israelis and Palestinians are signaling new efforts to forge a ceasefire deal, even a limited one, for the first time in a year that would pause the fighting in Gaza and return to Israel some of the hostages still held in the Palestinian enclave, Reuters reports.

Israeli defence minister Israel Katz told his US counterpart Lloyd Austin in a phone call earlier there was now a chance for a new deal that would allow the return of all the hostages, including US citizens, Katz’s office said.

A Western diplomat in the region, however, said a deal was taking shape, but it would likely be limited in scope, involving the release of only a handful of hostages and a short pause in hostilities.

Such a truce and release would be only the second since the start of the conflict in October 2023.