The new director of Egypt’s General Intelligence Service has presented the head of Israel’s Shin Bet security service with a proposal that would initially see a “small” ceasefire deal in Gaza before negotiations on a broader deal could begin , according to the Axios news network citing two Israeli officials.

Negotiations to reach an agreement on the release of the hostages and a ceasefire have been deadlocked for almost two months, and no meaningful talks have taken place between the parties involved.

However, US and Israeli officials believe that the death of Hamas leader Yahya Shinuar creates an opportunity to restart negotiations and free the 101 hostages still held by Hamas, as well as reach a ceasefire in Gaza.

The meeting in Cairo on Sunday between Egypt’s new intelligence chief Hassan Rashad and Shin Bet director Ronen Barr was Rashad’s first with an Israeli official.

It took place less than a week after Rashad took office and against the background of Sinwar’s death.

Israeli officials said the Shin Bet director presented the Egyptians’ idea to Israel’s security cabinet at a meeting Sunday night when he returned from Cairo.

The Egyptians are proposing to start with a “small deal” that would include the release of a small number of hostages held by Hamas in exchange for a few days of ceasefire in Gaza, Israeli officials said.

Egypt’s intelligence chief told Barr that the “little deal” would then continue with renewed negotiations for a more comprehensive hostage and cease-fire deal, Israeli officials said.

Israeli Defense Minister Yoav Gallad supported the Egyptian idea, while ultra-nationalist ministers Itamar Ben Gvir and Bezalel Smotrich were opposed, officials said.