Talks to reach a Gaza ceasefire and hostage release deal between Israel and Hamas are 90% complete, but key issues remain that need to be bridged, a senior Palestinian official involved in the talks told the BBC.

U.S. officials say both Hamas and Israel are making concessions toward securing a deal, but tempered optimism with differences remaining on key issues.

An agreement to halt the 14-month-old war in Gaza and free hostages held in the Palestinian enclave could be signed in coming days with talks in Cairo making progress, sources briefed on the meeting said on Tuesday.

Israel and Hamas are closing in on an agreement to end more than 14 months of war. But so far, the sides remain unable to seal the deal.

The White House was hoping for a Middle East ceasefire deal by Christmas but it doesn't look like that will happen with fighting picking up once again in the Gaza Strip.