A U.S. official had said the deal will include a four- or five-day ceasefire, the first pause in six weeks of an Israeli bombardment of Gaza.
Hamas took about 240 hostages, including children and elderly people, during its rampage into Israel that killed 1,200 people, according to Israel's tally.
Relatives of the Israeli hostages and supporters had marched by the thousands along the highway from Tel Aviv to Jerusalem to pressure the government to secure the captives' release.
An Israel Prison Service spokesperson said they were not aware of a deal to release Palestinian prisoners.
Hamas has to date released only four captives: U.S. citizens Judith Raanan, 59, and her daughter, Natalie Raanan, 17, on Oct. 20, citing "humanitarian reasons," and Israeli women Nurit Cooper, 79, and Yocheved Lifshitz, 85, on Oct. 23.
Persons:
Benjamin Netanyahu, Yoav Gallant, Benny Gantz, Netanyahu, Joe Biden, Daniel Hagari, Ishay, Reuma, Tarshansky, Zvika, Omer Wenkert, Itzhaki, Qadura, Judith Raanan, Natalie Raanan, Nurit Cooper, Yocheved Lifshitz, Maayan Lubell, Rami Amichay, Eli Berlzon, Henriette Chacar, Steve Holland, Jonathan Landay, Steven Scheer, Howard Goller
Organizations:
Rights, U.S, Hamas, Qatar, Defence Ministry, Prisoners ' Affairs, Palestinian Authority, Reuters, Israel Prison Service, Thomson
Locations:
Tel Aviv, Israel, ABIR, Gaza, Jerusalem, Gali, Kibbutz Beeri, Ramallah