Talks over a possible ceasefire in Gaza and hostage release deal ended without agreement in Cairo on Sunday, two Egyptian security sources told Reuters.
The sources added that neither Hamas nor Israel had agreed to several compromises presented by mediators.
A US official quoted by Axios said, "Senior level talks in Cairo over recent days, including with representatives from Hamas and Israel, have been constructive and were conducted in a spirit on all sides to reach a final and implementable agreement.”
“The process will continue over the coming days through working groups to further address remaining issues and details," the official added.
Earlier on Sunday evening, Hamas again rejected a proposal for a hostage deal that was presented to it.
Senior Hamas official Osama Hamdan told Al-Aqsa TV that "Israel has set new conditions for accepting the agreement and reverted from what it had previously agreed to. Today the delegation informed the mediators of our position. We will not accept any withdrawals from what we agreed to on July 2 or any new demands."
He added that "the US administration is sowing false hopes by talking about an agreement that is close, while this is only for election purposes."
Hamas has repeatedly rejected the proposals for a hostage release deal.
US Secretary of State Antony Blinken visited Israel last week and met Prime Minister Benjamin Netanyahu.
In a statement to the media after the meeting, Blinken said that Netanyahu told him that he accepts the ceasefire deal proposed by the US last week and that they are now waiting to hear that Hamas has done the same.
"There is a real sense of urgency in the region to get the deal to the finish line and the US is deeply committed to getting the deal done now," he said.
Hamdan later criticized Blinken's statement, saying it "raises many ambiguities" because it is "not what was presented to us nor what we agreed on."
He added that Hamas has already confirmed to mediators that "we don't need new Gaza ceasefire negotiations, we need to agree on an implementation mechanism."