Indirect negotiations mediated by Qatar, Egypt and the United States have taken place in Doha in recent days, rekindling hope for an agreement between the two warring parties that has so far proven elusive.
On Wednesday, both sides accused the other of throwing up roadblocks, while fighting raged on in the Gaza Strip where rescuers reported 17 killed in Israeli strikes.
Palestinian militant group Hamas, whose October 7, 2023 attack triggered the war, said in a statement that "the ceasefire and prisoner exchange negotiations are continuing in Doha under the mediation of Qatar and Egypt in a serious manner."
But, it added, Israel "has set new conditions" which have "delayed reaching an agreement".
Hamas said the Israeli demands concern troop withdrawal, the terms of the proposed ceasefire and the potential release of prisoners held in Israeli jails, as well as "the return of displaced people" to their homes in Gaza.
It did not specify what the Israeli conditions were.
Israel swiftly refuted the accusations, saying it was Hamas that was creating "new obstacles" to an agreement.
"The terrorist organisation Hamas is once again lying, reneging on understandings already reached, and continuing to create new obstacles in the negotiations," said a statement from the office of Prime Minister Benjamin Netanyahu.
Just days ago, both sides had reported progress.
Netanyahu on Monday told a parliament session that there had been "some progress" in the talks, and a day later his office said Israeli negotiators had returned from Qatar after "significant negotiations".
On Saturday, Hamas and two other Palestinian groups said in a joint statement that a ceasefire agreement was "closer than ever", but cautioned that it would only be possible if Israel did not impose new conditions.
- 'Don't wait' -
In Israel, critics of Netanyahu including relatives of some of the dozens of hostages still in captivity in Gaza have accused the prime minister of stalling.
On Wednesday, a group of family members of Gaza hostages urged Netanyahu to secure a deal to bring their loved ones homes.
"It's time to bring them back, Netanyahu. It's up to you," said Sharon Sharabi, whose two brothers were abducted during the Hamas attack last year. One of them has died in captivity, according to the Israeli military.
"It's about time, don't wait," said Sharabi, reading out a statement at Tel Aviv's Hostages Square.
Efforts to strike a truce and hostage release deal in numerous rounds of indirect talks have repeatedly failed over key stumbling blocks.
Israel and Hamas have agreed just one truce in more than 14 months of war.
The late 2023 one-week pause saw 80 Israeli hostages freed in exchange for 240 Palestinians detained by Israel, with 25 other captives, mostly Thai farm workers, also released.
A primary bone of contention in negotiations since then has been the establishment of a lasting ceasefire.
Another unresolved issue has been Gaza's post-war governance, which remains highly contentious including within the divided Palestinian leadership.
Israel has repeatedly said it would not allow Hamas, which has ruled Gaza since 2007, to run the tiny coastal territory ever again.
- 'No Hamas' -
In an interview with The Wall Street Journal last week, Netanyahu said: "I'm not going to agree to end the war before we remove Hamas."
Israel is "not going to leave them in power in Gaza", he added.
Netanyahu has also said he would not agree to a complete withdrawal of troops from Gaza, and on Wednesday his defence minister, Israel Katz, said security matters in the Palestinian territory "will remain in the hands of the IDF", the Israeli military.
"There will be no Hamas authority or Hamas military organisation" in Gaza, Katz said.
On the ground, Gaza's civil defence agency said at least 17 people were killed in Israeli strikes on Wednesday.
Mahmud Bassal, the agency's spokesman, told AFP that the dead in strikes across Gaza include "women and children".
The Israeli military said its forces had targeted a militant in a strike on Gaza City.
Israel's military campaign, launched in response to Hamas's unprecedented attack, has killed at least 45,361 people in Gaza, a majority of them civilians, according to figures from the Hamas-run territory's health ministry that the UN considers reliable.
The October 7 attack last year resulted in 1,208 deaths on the Israeli side, mostly civilians, according to an AFP tally of Israeli official figures.
Militants also seized 251 hostages, 96 of whom remain in Gaza including 34 the Israeli military says are dead.
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