Israeli Prime Minister Benjamin Netanyahu on Sunday said he expects to move into the second phase of a Gaza ceasefire soon but warned negations would be as "equally difficult" as the first stage.

"We finished the first part, as you know, phase one. We're almost there... And then we very shortly expect to move into the second phase which is more difficult, or equally difficult," he said following a meeting with German Chancellor Friedrich Merz.

Under the first phase of US President Donald Trump’s 20-point peace plan, the fighting stopped and dozens of hostages held in Gaza were exchanged for hundreds of Palestinians held in Israeli prison.

Israel sent a delegation last week to Egypt for talks on returning the remains of the last hostage.

The second phase includes the deployment of an international security force in Gaza, formation of a new technocratic government for the territory, the disarmament of Hamas and an eventual withdrawal of Israeli forces.

Netanyahu also emphasised the importance of implementing a third phase.

"That is to deradicalize Gaza, something that also people believed was impossible," he said.

"It was done in Germany, it was done in Japan, it was done in the Gulf states, it can be done in Gaza too, but of course Hamas has to be dismantled," he added.

Netanyahu is expected to meet with Tump at the White house at the end of the month.

"We have to make sure that we achieve the same results in the second stage, and that's something I look forward to discussing with President Trump," Netanyahu said.

AP video shot by: Shlomo Mor