A US proposal to end the war in Gaza hinges on the designated terrorist group Hamas signing its own extinction warrant, a former ambassador to Israel warns.

The White House has released a 20-point peace plan that includes an immediate ceasefire, the release of hostages and prisoners on both sides and an end to the Israeli military campaign in Gaza.

It also includes conditions previously rejected by both sides and is dependent on Hamas' agreement.

Australia's former ambassador to Israel, and now Liberal senator, Dave Sharma, says getting Hamas to agree to a peace deal will be a challenge.

Still, it's not implausible that a deal can be struck.

"Hamas is being asked to sign its own extinction warrant here," Senator Sharma told Nine's Today show on Tuesday.

"But the leaders are being off

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