With the first phase of the truce set to expire Saturday, Israel and Hamas appear far from reaching an agreement to proceed to the second, decisive phase.

Israel and Hamas have reached an agreement to exchange the bodies of four hostages for the release of hundreds of Palestinian prisoners, an Israeli source told CNN, indicating the fragile Gaza ceasefire remains intact for now.

The Palestinian militant organization Hamas on Tuesday said it has reached an agreement with Israel for the simultaneous release of more than 600 Palestinian prisoners by Israel and the return of four Israeli hostages' bodies by Hamas.