Israel and mediators from Egypt, the U.S. and Qatar have given Hamas a final draft agreement for the release of hostages held by Hamas in exchange for a ceasefire in Gaza, two senior Israeli officials and a source familiar with the details said.

Three officials acknowledged progress has been made and said the coming days would be critical for ending more than 15 months of fighting that has destabilized the Middle East.

Israel is willing to withdraw its troops from Gaza when all hostages have been released under a ceasefire deal with Hamas, The Telegraph has learned...