Israeli negotiators have been discussing the issue of an Israeli military withdrawal from the key Philadelphi Corridor between the Gaza Strip and Egypt as part of a potential ceasefire agreement, despite the office of Prime Minister Benjamin Netanyahu denying the matter, The Times of Israel reported, citing two officials involved in the negotiations.

According to the officials, the withdrawal would be part of a plan where Egypt, with assistance from the United States and other international partners, would strengthen the border to prevent the Hamas movement from allegedly smuggling weapons into Gaza from Sinai.

Additionally, the officials indicated that the arrangement would include constructing an underground wall along the Philadelphi Corridor to eliminate the tunnel threat.

Earlier, Reuters cited two Egyptian sources and a third source familiar with the matter as saying that Israeli and Egyptian negotiators are discussing the implementation of an electronic surveillance system along the Gaza-Egypt border, which could allow "Israel" to withdraw its troops if a ceasefire is agreed upon.

Netanyahu's office described the Reuters report as "absolute fake news," affirming that the Israeli premier "insists that Israel remain on the Philadelphi Corridor."

On its part, the Israeli newspaper Maariv reported that officials involved in the negotiations mentioned that a partial withdrawal from the Philadelphi Corridor was proposed during the negotiations, specifically in the talks the director of the Shin Bet, Ronen Bar, made in Egypt.

Conversely, the newspaper mentioned that another official, also participating in the negotiations, said that "Israel" did not discuss the issue of the Philadelphi Corridor and did not address the issue of "Israel" maintaining control over the Rafah crossing.

Moreover, Al-Qahera News TV cited a high-ranking Egyptian source who denied rumors about Egyptian-Israeli security arrangements regarding the border with the Gaza Strip.

This comes after Netanyahu insisted that "Israel" maintain control of the Philadelphi Corridor and the Rafah crossing, key Gaza territories along the border with Egypt, which conflicts with Hamas' position that the occupation forces must withdraw from all of the Gaza Strip after a ceasefire.

Netanyahu claimed on Thursday that control of the Philadelphi Corridor is part of efforts to prevent "weapons to be smuggled to Hamas from Egypt."

Netanyahu's new demands prolonging negotiations: Israeli media

Israeli media reported that Netanyahu has decided to harden his stance, despite previously agreeing to withdraw all Israeli military forces from the Gaza Strip in the second phase of a deal.

The media suggested that a ceasefire in Gaza and a deal to return the Israeli captives are within reach and could be concluded within two weeks, but Netanyahu is obstructing an agreement.

Israeli sources told the Israeli newspaper Haaretz that Netanyahu's policy toward the prisoner exchange deal is causing concern, noting that the prime minister is hardening his stance, presenting demands that were not previously on the table, and retreating from commitments previously made by "Israel".

The sources suggested that Netanyahu's demands will prolong the prisoner exchange negotiations and may even derail them.

Captives' families 'horrified, shocked' by Netanyahu's behavior

The "Hostage and Missing Families Forum" reacted angrily to reports that Netanyahu is obstructing the process of reaching a deal with his new demands.

"We are horrified and shocked by this irresponsible behavior that is likely to lead to missing an opportunity that might not come back," the forum underlined in a statement.

"We appeal to the prime minister: we stand behind the Netanyahu deal. Now it’s your turn to stand behind the deal you put on the table," the statement read.

Read more: Hamas: We've shown flexibility in talks, Netanyahu obstructing deal