Photos of hostages
Photos of hostagesMiriam Alster/Flash 90

Hamas announced on Monday night that it has decided to reject the new proposal for a deal to release hostages.

An official statement published by the terrorist organization said that "a short time ago we informed the mediators that the organization sticks to its position that was conveyed on March 14. Israel's response did not meet any of our basic demands - a comprehensive ceasefire, withdrawal from the Gaza Strip, the return of the displaced and an exchange of prisoners."

"Netanyahu and his extremist government bear full responsibility for the failure of the negotiation efforts," Hamas said.

An Israeli official said on Sunday night that Israel had agreed to release 700 terrorists jailed in Israel in exchange for the release of 40 hostages held by Hamas in Gaza.

Analyst Barak Ravid reported that of the 700 terrorists, about 100 are serving life sentences for serious acts of terror which they carried out.

Israel rejected a similar offer proposed by the Qatari brokers several weeks ago, but Hamas at the time was demanding a significantly higher number of terrorists serving life sentences in Israel.