Talks to extend the Gaza ceasefire have failed to reach an agreement, a Palestinian official has told the BBC, as the US accused Hamas of making “entirely impractical” demands at meetings in Qatar.

Negotiators have been trying to find a way forward after the first phase of the temporary truce ended on 1 March.

The US proposed to extend the first phase until mid-April, including a further exchange of hostages held by Hamas and Palestinian prisoners held by Israel.

But the Palestinian official familiar with the talks, who did not wished to be named, said Israel and Hamas disagreed over key aspects of the deal set out by US Middle East envoy Steve Witkoff at the indirect talks.

On Saturday, Prime Minister Benjamin Netanyahu’s office said Israel was prepared to continue negotiations with Hamas on extending the ceasefire in Gaza.

The comments came after Netanyahu met top aides and security officials. His office said the decision was a response to what Israel had heard from mediators on US proposals for 11 living Israeli hostages to be released, and the bodies of half of the deceased hostages.

The White House accused Hamas of making “entirely impractical” demands in its response to Witkoff’s proposal.

It would extend the ceasefire into April but delay the negotiation of a permanent end to the war.

A statement from Witkoff’s office and the US National Security Council on Friday said: “Hamas is making a very bad bet that time is on its side. It is not.”

“Hamas is well aware of the deadline, and should know that we will respond accordingly if that deadline passes.”

A Hamas statement seen by the BBC said negotiations had broken down.

Netanyahu’s office had earlier said Israel accepted the US proposal.

It said Hamas remained “firm in its refusal and has not budged a millimetre,” accusing the group of “manipulation and psychological warfare”.

Israel and Hamas agreed to a ceasefire deal involving three stages in January, after 15 months of war.

In the first stage, Hamas returned 25 living Israeli hostages, the remains of eight others, and five living Thai hostages. Israel released about 1,800 Palestinian prisoners in exchange.

The deal says stage two will include the remaining living hostages in Gaza exchanged for more Palestinian prisoners.

But both sides currently disagree on the number of hostages due to be released next.

They also disagree on the withdrawal of Israeli troops from Gaza, which the original deal states should be happening by now.

Israel resists this point, while Hamas insists it should happen.

Earlier in March, Israel blocked aid shipments to Gaza and then cut electricity, saying it aimed to put pressure on Hamas.

It is believed that Hamas is still holding up to 24 living hostages in Gaza and the remains of 35 others.

As indirect talks continued on Friday, the group said in a statement it was ready to release the last living Israeli-American hostage it is known to be holding.

Edan Alexander, 21, was serving as an Israeli soldier close to Gaza when he was taken.

Under the terms of the original ceasefire agreement, it was expected that he would have been among the last hostages to be released.

The group also said it would hand over the remains of four other dual nationals captured during the 7 October 2023 attacks.

It did not give further details or make clear what it would demand in return.

Witkoff dismissed the offer, saying Hamas was trying to appear flexible in public while being impractical in private.

The attacks led by Hamas on 7 October 2023 killed more than 1,200 people in southern Israel, mostly civilians, with 251 taken hostage.

The assault triggered an Israeli military offensive that has since killed more than 48,520 people, most of them civilians, according to figures from the Hamas-run health ministry which are used by the UN and others.

Most of Gaza’s 2.1 million population has been displaced multiple times.

An estimated 70% of buildings have been damaged or destroyed, healthcare, water, and sanitation systems have collapsed and there are shortages of food, fuel, medicine and shelter.

Additional reporting by Emir Nader.