He vowed to press ahead with Israel’s war against Hamas, now in its fifth month, until achieving “absolute victory.”

Netanyahu made the comments on Wednesday (Thursday AEDT) shortly after meeting the visiting US Secretary of State, Antony Blinken, who has been travelling the region in hopes of securing a cease-fire agreement.

Israeli Prime Minister Benjamin Netanyahu has rejected Hamas’ terms for a cease-fire and hostage-release agreement. (AP)

“Surrendering to Hamas’ delusional demands that we heard now not only won’t lead to freeing the captives, it will just invite another massacre,” Netanyahu said in a nationally televised evening news conference.

“We are on the way to an absolute victory,” he said, adding that the operation would last months, not years.

“There is no other solution.”

More than 100 Palestinian militants left Nir Oz with some 80 of its roughly 400 residents.

Eight weeks on, Israelis bring new focus to hostages taken from Nir Oz

He ruled out any arrangement that leaves Hamas in control of any part of Gaza. He also said that Israel is the “only power” capable of guaranteeing security in the long term.

Earlier, Blinken said that “a lot of work” remains to bridge the gap between Israel and Hamas on terms for any deal. He was expected to hold his own news conference later Wednesday.

Hamas laid out a detailed, three-phase plan to unfold over four-and-a-half months, responding to a proposal drawn up by the United States, Israel, Qatar and Egypt.

Israelis march in Tel Aviv demanding government action to free hostages held by Hamas. (AP)

The plan stipulates that all hostages would be released in exchange for hundreds of Palestinians imprisoned by Israel, including senior militants, and an end to the war.

Israel has made destroying Hamas’ governing and military abilities one of its wartime objectives, and Hamas’ proposal would effectively leave it in power in Gaza and allow it to rebuild its military capabilities.

US President Joe Biden said Hamas’ demands are “a little over the top” but that negotiations will continue.

The deadliest round of fighting in the history of the Israeli-Palestinian conflict has killed over 27,000 Palestinians, leveled entire neighbourhoods, driven the vast majority of Gaza’s population from their homes and pushed a quarter of the population to starvation.

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