Israel's Prime Minister Benjamin Netanyahu told lawmakers Monday that Israel's war in Gaza had offered opportunities to sign new peace accords with Arab nations and "dramatically change the face of" the Middle East.

"Moderate Arab countries view Israel as a regional power and a potential ally. I intend to seize this opportunity to the fullest.

Together with our American friends, I plan to expand the Abraham Accords... and thus change even more dramatically the face of the Middle East," he said in parliament, referring to agreements which normalised ties between Israel and some Arab states during Donald Trump's first term as US president.

His comments in parliament come two days after Palestinian militant groups said in a rare joint statement that a deal for a ceasefire in the Gaza war and to exchange prisoners was "closer than ever."

In recent days, indirect negotiations between Israel and Hamas mediated by Qatar, Egypt, and the United States took place in Doha, rekindling hope of an agreement that has proven elusive.

"I want to say to the families of the hostages: We are thinking of you and we will not give up on your loved ones, who are our loved ones as well."

Hostage families have questioned the sincerity of government negotiation efforts, and critics have long accused Netanyahu of stalling in truce talks, prolonging the war partly to appease his far-right coalition partners.

On Saturday, Hamas, Islamic Jihad and the leftist Popular Front for the Liberation of Palestine said progress had been made.