Hamas has been offered a 40-day ceasefire and the release of "potentially thousands" of Palestinian prisoners in return for freeing Israeli hostages, British Foreign Secretary David Cameron said Monday.

The Palestinian militant group has been given "a very generous offer of sustained 40 days ceasefire, the release of potentially thousands of Palestinian prisoners, in return for the release of these hostages", Cameron told a World Economic Forum meeting in Riyadh.

A Hamas delegation is due in Egypt on Monday, where it is expected to respond to the latest proposal for a truce in Gaza and a release of hostages after almost seven months of war.

"I hope Hamas do take this deal and frankly, all the pressure in the world and all the eyes of the world should be on them today saying take that deal," Cameron said, adding the proposal would lead to a "stop in the fighting that we all want to see so badly".

Egypt, Qatar and the United States have been trying to mediate an agreement between Israel and Hamas for months, but a flurry of diplomacy in recent days appeared to suggest a new push towards halting hostilities.

The UK foreign minister said that for a "political horizon for a two-state solution", with an independent Palestine co-existing with Israel, the "people responsible for October 7, the Hamas leadership, would have to leave Gaza and you've got to dismantle the terrorist infrastructure in Gaza".

"You've got to see a political future for the Palestinian people, but you've also crucially got to see security for Israel and those two things have to go together," he added.