Sources close to the talks have said the truce would last at least 40 days, during which the militants would free civilians among the remaining hostages they hold.
Hamas and Islamic Jihad fighters handed over several hostages Tuesday to the Red Cross in Gaza, an AFP journalist saw, part of an exchange under the terms of an extended truce in the Israel-Hamas war.
Ohad Munder, who spent his ninth birthday as a hostage in Gaza, was among four young children freed from captivity on Friday, as he returned with his mother and grandmother to Israel on the first day of a planned four-day truce and prisoner exchange.