The proposal was put forward by CIA Director Bill Burns, the report said, adding that it involves the release by Israel of about 700 Palestinian prisoners in exchange for the release of 40 Israeli hostages by Hamas.
However, agreements were still not reached on other issues, including the delivery of humanitarian aid to the Gaza Strip and the deployment of the Israeli military in the enclave, the report read.
Earlier, the Al-Qassam Brigades, the military wing of Palestinian movement Hamas, said that a 34-year-old Israeli hostage died from a lack of medicine and food.
"We inform about the death of a 34-year-old Zionist [Israeli] hostage … as a result of a lack of medicine and food," the military said in a statement.