Israel has offered to allow hundreds of Hamas members trapped in Israeli-occupied Gaza safe passage in return for the body of an Israeli soldier killed in 2014, according to Israeli media.
Around 200 Hamas fighters are believed to be in tunnels underneath Rafah, which is behind the so-called Yellow Line.
The two sides are negotiating their fate via mediators, Kan reported on Wednesday.
The Israeli government had initially refused to allow the men to cross into Hamas-controlled Gaza.
It is now reportedly open to allowing them safe passage in exchange for the body of Hadar Goldin, who was killed during Israel's invasion of Gaza in 2014.
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