Both parties have reportedly supported US President Donald Trump's peace plan.

Palestinian and Egyptian officials have told the BBC that the sessions are focused on "creating the field conditions" for a possible exchange that would see the release of all Israeli hostages in return for a number of Palestinian prisoners.

After Monday’s meeting, U.S. President Donald Trump told reporters, as quoted by the BBC, “We have a really good chance of making a deal, and it’ll be a lasting deal.”

October 7 marks the second anniversary of the Hamas-led attacks on Israel, which killed about 1,200 people and saw around 250 hostages taken into Gaza.

In response, Israel launched a massive military campaign against Hamas in the enclave. Since then, 67,160 people have been killed in Gaza, including 18,000 children, according to the Hamas-run health ministry, the BBC reported.

UN Secretary-General António Guterres, in a statement marking two years since the October 7 attacks, reiterated his call for the immediate and unconditional release of all hostages still held in Gaza.

“The attackers brutally killed more than 1,250 Israelis and foreign nationals. More than 250 others were abducted and taken into Gaza as hostages, including women, children and the elderly. The horror of that dark day will be forever seared in our collective memory,” Guterres said.

An estimated 48 hostages remain captive in Gaza, with around 20 believed to be alive and 28 presumed dead, according to Israeli assessments.