ISRAEL is the closest it has ever been to a hostage deal after months of a bloody war in Gaza.

Outgoing US president Joe Biden said a deal is “on the brink” to free those still trapped at the hands of Hamas terrorists and give the people of Palestine a “surge” of aid.

The following hours are crucial for the fate of hostages and the end of the conflict in the Middle East as Tel Aviv and Hamas have been sent a final draft of the deal today.

A diplomatic source told NBC: “We are the closest we’ve ever been.”

The proposal sees the first hostages held by the terror group released 48 hours after the ceasefire is in place, US officials said.

One of the officials said the first set of hostages set to be released is “in very bad shape” while the rest of those held in Gaza would follow.

Local media report that Hamas has already accepted the deal without any reservations.

The proposal also calls for Israel to withdraw from populated areas of Gaza.

Israel is said to be willing to take its troops out of Gaza when the hostages have been released, The Telegraph reports.

Earlier today an official said a ceasefire and hostage deal has been presented by Qatar to both sides at talks in Doha.

The briefing included the chiefs of Israel‘s Mossad and Shin Bet spy agencies and Qatar‘s prime minister.

Biden, who has just days left in office, gave a positive prediction for the future for Gaza in his final foreign policy speech saying a deal is “on the brink”.

Today’s crunch talks were also joined by Steve Witkoff, who will become US envoy when Trump returns to the US presidency next week.

The official stressed the following hours are crucial for the outcome of the breakthrough reached in the early hours of Monday.

“The next 24 hours will be pivotal to reaching the deal,” the official said.”

Israeli Foreign Minister Gideon Saar said the negotiations were being coordinated between Biden’s and Trump’s teams.

“There is progress, it looks much better than previously. I want to thank our American friends for the huge efforts they are investing to secure a hostage deal,” Saar said.

A Hamas official said a number of contentious issues still need to be resolved, including an Israeli commitment to ending the war and details about the withdrawal of Israeli troops and the hostage-prisoner exchange.

In Cairo, an Egyptian security official said the draft sent to the two warring sides did not comprise the final agreement but “aims to resolve outstanding issues that had hindered previous negotiations”.

The United States, Qatar and Egypt have worked for more than a year on talks to end the war in Gaza but to no avail.

Hamas has said that it won’t release the remaining captives without an end to the war, while Israeli Prime Minister Netanyahu has vowed to continue the campaign until total victory over the militant group.

While families of the roughly 100 hostages still held in Gaza have been pressing Netanyahu to reach a deal to bring their loved ones home.

Meanwhile, Washington is looking to reach a ceasefire deal and the release of the hostages before President-elect Donald Trump takes office on January 20.

He has previously warned that “all hell will break out in the Middle East” if the remaining hostages are not released before he assumes office.