Hamas says it is prepared to release all Israeli hostages, alive or dead, under the terms of US President Donald Trump's Gaza proposal.
The group also reiterated its agreement to hand over the administration of the Gaza Strip to an independent Palestinian body.
In a statement, Hamas said some of the elements of Trump's peace plan were acceptable, but others would require further negotiation.
Qatari mediators have received Hamas's response to the peace plan, a source with knowledge of the talks told Reuters.
Notably, Hamas did not say whether it would agree to a stipulation that it disarm, a demand by Israel and the US that it has previously rejected.
In its statement, Hamas said it "appreciates the Arab, Islamic, and international efforts, as well as the efforts of US President Donald Trump, calling for an end to the war on the Gaza Strip, the exchange of prisoners, [and] the immediate entry of aid," among other terms.
It said it was announcing its "approval of releasing all occupation prisoners — both living and remains — according to the exchange formula contained in President Trump's proposal, with the necessary field conditions for implementing the exchange".
"In this context, the movement affirms its readiness to immediately enter, through the mediators, into negotiations to discuss the details," the statement added.
A key point in the plan is that Hamas disarms, a demand it has previously rejected.
Speaking after the group issued its response to the plan, Senior Hamas official Mousa Abu Marzouk told Al Jazeera the group would not disarm before the Israeli "occupation" ended.
Hamas issued its response to Trump's 20-point plan after the US president gave the Palestinian militant group until Monday AEST to accept or reject the proposal.
Mr Trump has not said whether the terms would be subject to negotiation, as Hamas is seeking.
Earlier, he warned Hamas it would have "all hell" to pay if it did not accept his peace plan for Gaza within a few days.
"If this LAST CHANCE agreement is not reached, all HELL, like no one has ever seen before, will break out against Hamas," he wrote.
He had initially given Hamas three to four days to accept the deal after his 20-point plan was announced on Tuesday.
In the post, he said "innocent Palestinians" should evacuate to an unspecified area in anticipation of a potential assault on Hamas's remaining forces.
Most of Hamas's fighters "are surrounded and MILITARILY TRAPPED, just waiting for me to give the word, 'GO,' for their lives to be quickly extinguished. As for the rest, we know where and who you are, and you will be hunted down, and killed," he said.
"I am asking that all innocent Palestinians immediately leave this area of potentially great future death for safer parts of Gaza. Everyone will be well cared for by those that are waiting to help. Fortunately for Hamas, however, they will be given one last chance!"
US and Israel seek to pressure Hamas
The peace proposal received the backing of Israeli Prime Minister Benjamin Netanyahu on Tuesday after nearly two years of devastating Israeli onslaughts in Gaza, which a UN-backed inquiry recently assessed was a genocide.
The Israeli military is waging an air and ground offensive on the territory's largest urban centre, Gaza City, from which hundreds of thousands have been forced to flee.
The UN on Friday reiterated there was no safe place in Gaza and that Israel-designated zones in the south were "places of death".
Israel's offensive has killed at least 66,148 Palestinians, according to health ministry figures in the Hamas-run territory that the UN considers reliable.
Its data does not distinguish between civilians and combatants, but indicates that more than half of the dead are women and children.
The war began after Hamas militants led an assault on southern Israel on October 7, 2023, which killed about 1,200 people, according to Israeli tallies, and took about 250 hostages.
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