Hamas's willingness to discuss a release deal indicates a change in its policy, having stressed previously that it would only release the remaining hostages in exchange for a permanent ceasefire.
While Israel has sought to negotiate one stage at a time, Hamas is seeking "a package deal" that agrees a permanent ceasefire before hostages are released.
A premature end to the war will leave a battered Hamas still intact and able to recover and regain its stranglehold on Gaza
In a special video message on Sunday night, Netanyahu described Hamas's terms to free some 132 hostages in Gaza as those of “capitulation,” adding that he “utterly” rejected them.
Katz will also present his European counterparts with strategic plans and projects to promote the region, including the "Tracks for Regional Peace" initiative, connecting the Middle East and Europe.
Despite the schism, there was agreement between both groups that the best way to secure the release of the hostages was by exerting military pressure on Hamas.
Part of the deal would include the release of hostages and new normalization agreements between Israel and Arab states.