Mediators are working to end a stand-off in Gaza's south where Hamas soldiers are holed up in Rafah. Photo: AP PHOTO

Hamas fighters holed up in the Israeli-held Rafah area of Gaza will not surrender to Israel, the group's armed wing says as it urges mediators to find a solution to a crisis that threatens the month-old ceasefire.

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Sources close to mediation efforts told Reuters on Thursday fighters could surrender their arms in exchange for passage to other areas of the enclave under a proposal aimed at resolving the stalemate.

Egyptian mediators have proposed that, in exchange for s

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