Hamas has softened its stance on a key demand in the ongoing hostage-ceasefire negotiations, agreeing to allow Israeli troops to remain in Gaza during a potential ceasefire on a temporary basis, Arab mediators have confirmed to The Wall Street Journal. 

This marks a significant shift, as Hamas had previously insisted that any deal must include a permanent end to the conflict and the full withdrawal of Israeli forces from Gaza.

For months, Hamas has held firm on the demand for a complete Israeli pullout, but recent developments indicate some flexibility in the terms, particularly regarding Israeli army's withdrawal from certain strategic corridors in Gaza.

According to an Arab diplomat speaking to The Times of Israel, there are now "indications" that both sides may be willing to negotiate the terms of withdrawal, especially concerning the Philadelphi and Netzarim Corridors that lie along Gaza's borders.

The Wall Street Journal reported that the two sides are considering a 60-day ceasefire, during which up to 30 hostages, including US citizens, are expected to be released. In return, Israel would release Palestinian prisoners and increase the flow of humanitarian aid into Gaza.

For the first time since the temporary ceasefire in November, Hamas submitted a list of hostages to the mediators, including US nationals, women, elderly individuals, and those with medical conditions. Notably, the list also contained the names of five hostages who are confirmed to have died. The names of the hostages were disclosed as part of the ongoing negotiations and signals a step forward in the efforts to resolve the crisis.

The Wall Street Journal further reported that hostages are expected to be freed soon after the ceasefire is implemented. Hamas will then begin efforts to establish the whereabouts and conditions of the remaining captives.

Israeli negotiators, however, are pushing for more hostages to be released in the initial phase of the ceasefire. In exchange, they have agreed to a gradual withdrawal from the Philadelphi Corridor, but they rejected any proposal that would restrict their military presence in other areas, including the northern parts of the Gaza Strip. Mediators indicated that Israel will reposition its forces, but will not accept full withdrawal from key areas of the Gaza Strip.