Israel will have to make "painful and significant" concessions under the US plan to end the war in Gaza.
The releases would be at odds with several recent policy positions from the Jewish State, particularly a role for the Palestinian Authority in the post-war plan, Israeli television Channel 12 reported on Saturday.
Prime Minister Benjamin Netanyahu has consistently rejected any role for the Palestinian Authority, insisting that Israel should retain control over the Gaza Strip after the war.
US President Donald Trump's latest plan calls for the gradual expansion of the Palestinian Authority's governing power, after a transition period where an international body would oversee the enclave.
The Palestinian Authority, established in 1994 under the Oslo Accords and currently led by Mahmoud Abbas, is a Western and internationally recognized governing body that currently has only limited authority in parts of the West Bank.
It initially administered both the West Bank and Gaza, but lost control of the Gaza Strip to Hamas in the 2006 Palestinian elections.