Prime Minister Benjamin Netanyahu said on Thursday the outcome of Israel's war with Iran presented opportunities for peace that his country should not waste.

In a statement, Netanyahu said: "This victory presents an opportunity for a dramatic widening of peace agreements. We are working on this with enthusiasm.

"Alongside the freeing of hostages and defeat of Hamas, there is a window of opportunity that must not be missed. We cannot waste even a single day."

Earlier in the day, Israel Hayom newspaper, quoting an unnamed source, said Netanyahu and U.S. President Donald Trump agreed in a phone call this week on a rapid end to the war in Gaza, perhaps within two weeks.

Israel Hayom said the deal could include the expansion of the Abraham Accords with Israel's Arab neighbours to include Saudi Arabia and Syria.

The prime minister's office declined to comment on the Israel Hayom report.

The U.S.-brokered Israel-Iran ceasefire announced by Trump raised hopes among Palestinians of an end to over 20 months of war in Gaza that has widely demolished the territory and displaced most residents, with malnutrition widespread.

On Sunday, Netanyahu said that with a weakened Iran, he expected more countries to join the Abraham Accords.

"We have broken the axis," Netanyahu told reporters then. "This is a huge change and Israel's status is rising, not just in the Middle East but also in the world. This is a tectonic shift."

"We will see a bright new future, of security, of prosperity, of hope and of peace."