TERRORIST group Hamas has announced it will release the last living American hostage in Gaza in a bid to establish a ceasefire.

Edan Alexander, an Israeli-American soldier who grew up in the US, was abducted from his base during the October 7 terror attack.

A source familiar with the matter said Alexander would likely be released on Tuesday.

It is part of efforts to reach a ceasefire agreement and allow humanitarian aid to enter the besieged enclave, the Palestinian terror group said.

Another official, the exiled Gaza Hamas chief Khalil al-Hayya, said efforts to facilitate the release have been jointly carried out by Qatar, Egypt, and Turkey.

There was no immediate comment from the Israeli prime minister’s office on the announcement.

Hamas had released 38 hostages under a ceasefire that began on January 19.

In March, Israel’s military resumed its ground and aerial offensive on Gaza after Hamas rejected proposals to extend the truce without ending the war.

Israeli officials said that the offensive will continue until the remaining 59 hostages are freed and Gaza is demilitarised.

Hamas insists it will free hostages only as part of a deal to end the war and has rejected demands to lay down its arms.

The Iran-backed terror group has said it is willing to free all remaining hostages its gunmen seized in attacks in southern Israel on October 7, 2023.

And to agree to a permanent ceasefire if Israel pulls out completely from Gaza.

Israel, which is in control of around a third of Gaza’s territory and has been imposing an aid blockade since March, said in May it would expand its Gaza offensive.

The Israeli cabinet has called up tens of thousands of soldiers as it readies itself to seize and hold the territory in a fresh offensive.

Top Israeli officials say the IDF is preparing to “conquer” all of the Gaza Strip.

The move would vastly expand Israel’s operations across the 25-mile-long area and likely bring fierce international opposition inside Israel.

It currently controls about half of the territory.

Officials said the new plan was meant to help Israel achieve its war aims of defeating Hamas and freeing hostages held in Gaza.

It also would push hundreds of thousands of Palestinians to southern Gaza, what would likely exacerbate an already dire humanitarian crisis.

For weeks, Israel has been trying to ratchet up pressure on Hamas and prompt it to show more flexibility in ceasefire negotiations.

But deal makers trying to bring the sides toward a new agreement have struggled to do so.

Army chief Lieutenant General Eyal Zamir said: “This week we are issuing tens of thousands of orders to our reservists to intensify and expand our operation in Gaza.”

Israel has killed hundreds as it has unleashed a bombardment on Gaza since the ceasefire with Hamas collapsed in mid-March.

More than 52,000 Palestinians have been killed by in 19 months of war, following the deadly October 7 terror attack.

Officials said Israel was in touch with several countries about President Donald Trump’s plan to take over Gaza and relocate its population.

Israel has termed the removal “voluntary emigration”, but the plan has sparked condemnations from Israel’s allies in Europe and the Arab world.

The announcement comes after the Houthi terror group in Yemen hit Ben Gurion airport with a missile.

It comes as Tel Aviv is also fighting off rocket attacks by the Houthis – who are trying to enforce an aerial blockade on their sworn enemies.

Israeli Prime Minister Benjamin Netanyahu vowed a tough response against the Houthis, as well as its main backer Iran, over the attack.

In a video published on Telegram, Netanyahu said Israel had “acted against” the Houthis in the past and “will act in the future”.

“It will not happen in one bang, but there will be many bangs,” he added, without elaborating.

Israel and the US have largely attacked the Houthis by bombing them – with footage last week capturing the staggering moment American forces carpet bombed them.