US President Donald Trump has announced on his social media platform Truth Social that Israel and the Palestinian militant group Hamas have signed off on his Gaza peace plan.

Trump's announcement comes as Hamas and Israeli officials are having indirect talks in Egypt on a 20-point peace proposal unveiled by Trump to end the two-year-old war.

"This means that all of the hostages will be released very soon, and Israel will withdraw their troops to an agreed upon line as the first steps towards a strong, durable and everlasting peace," Trump said in the announcement.

Hamas is currently believed to be holding 48 Israeli hostages it took during the October 7 terror attacks. Less than half of those hostages are presumed to be alive.

"With God's help, we will brings them all home," Israeli Prime Minister Benjamin Netanyahu said after Trump's announcement, referring to the Israeli hostages.

The announcement could also mean a respite for Palestinians after more than two years of war in Gaza.

Hamas urged Trump and mediator countries to ensure that Israel implements its side of the deal. The United States, Germany and several other countries regard Hamas as a terrorist organization.

Trump said earlier at the White House that he would go to the Middle East in case of a breakthrough regarding Gaza.

Trump that he would "go to Egypt most likely" but would also consider going to Gaza.

On Monday, the White House said Trump would be visiting the Walter Reed Medical Center for his annual routine checkup and would then possibly head to the Middle East.