Palestinian group Hamas said on Wednesday an exchange of Palestinian prisoners for the bodies of Israeli hostages would take place through "a new mechanism" that guaranteed Israel's compliance.

The date for the exchange would be announced at the right time, a Hamas statement added.

Hamas also said it had not received a proposal about the second phase of the Gaza ceasefire deal despite its readiness to proceed with it to complete all the phases.

An Egyptian source had said on Wednesday mediators have reached a deal to release Palestinian prisoners who were originally set to be freed by Israeli authorities last Saturday, along with the handover of Israeli hostages' bodies by Hamas.