GAZA CITY, Palestinian Territories: Israel on Friday said Hamas must accept a hostage deal in Gaza or "be annihilated", as US President Donald Trump announced that a ceasefire agreement was "very close."

It came amid dire conditions on the ground, with the United Nations warning that Gaza's entire population was at risk of famine.

Defence Minister Israel Katz said Hamas must agree to a ceasefire proposal presented by US envoy Steve Witkoff or be destroyed, after the Palestinian group said the deal failed to satisfy its demands.

"Hamas will now be forced to choose: accept the terms of the 'Witkoff Deal' for the release of the hostages – or be annihilated."

Israel has repeatedly said that the destruction of Hamas was a key aim of the war.

Negotiations to end nearly 20 months of war in Gaza have so far failed to achieve a breakthrough, with Israel resuming operations in March following a short-lived truce.

In the United States, Trump told reporters "they're very close to an agreement on Gaza", adding: "We'll let you know about it during the day or maybe tomorrow."

Food shortages in Gaza persist, with aid only trickling in after the partial lifting by Israel of a more than two-month blockade.

Jens Laerke, a spokesman for the UN humanitarian agency, called Gaza "the hungriest place on Earth."

"It's the only defined area – a country or defined territory within a country – where you have the entire population at risk of famine," he said.