The United States has put forward a new proposal that would secure the release of a handful of living hostages held by Hamas in exchange for a month-long extension of the Israel-Hamas ceasefire, a source familiar with the negotiations said.

Israel has accepted the U.S. proposal for a 50-day extension over the Ramadan and Passover holidays. Under the proposal, half of the remaining hostages (living and deceased) are to be freed on the first day; the rest will be released if a “permanent” ceasefire is agreed upon.

Hamas said on Friday it agreed to release an American-Israeli dual national, believed to be the last living American hostage held in Gaza, after receiving a proposal from mediators to continue negotiations on the second phase of a ceasefire deal.