The Times of Israel reported on Wednesday, citing multiple mediators, that the Biden administration's exchange deal proposal from last week overly accommodated Israeli Prime Minister Benjamin Netanyahu's demands for maintaining Israeli forces in the Philadelphi corridor.

As a result, the negotiations have reached a deadlock. An Arab official expressed frustration, stating that there would be little point in holding another planned high-level meeting of negotiators in Cairo later this week unless the US pressures Netanyahu to scale back his new demands and revises its bridging proposal.

Another Arab official voiced confusion over US Secretary of State Antony Blinken's recent public assertions that Netanyahu supports the US proposal, arguing that this misrepresents Hamas as the sole obstructionist in the negotiations.

The Arab official highlighted Netanyahu's demand for the establishment of a permanent Israeli military presence in the Corridor for the alleged purpose of preventing weapons transfer from Egypt into Gaza.

A third official involved in the negotiations said that while the so-called US bridging proposal does not explicitly allow for a permanent Israeli presence in Rafah, it also does not completely rule out such a deployment.

But given Hamas' refusal to comply with this demand, "[Netanyahu] is going to have to decide whether he wants to stick to these new demands or whether he wants to bring hostages home alive", says the official.

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Read more: Netanyahu chooses control of Philadelphi Axis over Israeli captives

Netanyahu's new demand has emerged as a significant obstacle in the ongoing negotiations. Israeli, Egyptian, and US officials, who met in Cairo earlier this week, discussed the corridor, with "Israel" presenting a map showing a reduction in forces but still maintaining a presence along the border. The Egyptian side rejected the plan, and US officials communicated to "Israel" that the proposal was unacceptable.

Netanyahu has reportedly told Secretary of State Antony Blinken that he insists on IOF control of the entire corridor, suggesting to the families of captives that he might have convinced Blinken to agree.

However, State Department officials refuted this, noting that Blinken was not persuaded and that the US does not support Netanyahu's position.

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Earlier today, Axios reported that US President Joe Biden is expected to speak with Netanyahu with the alleged intent of urging him to show more flexibility in negotiations to reach a deal in Gaza.

According to a source familiar with the call, Biden will address Netanyahu's insistence that the IOF remain deployed along the Philadelphi corridor.