Gaza ceasefire talks are "on the brink of collapsing" as negotiators head to Cairo this week to discuss the latest proposal, Politico reported on Tuesday, citing two US and two Israeli officials.

Before heading to Egypt and Qatar, US Secretary of State Antony Blinken said in Israel on Monday that the government in Jerusalem had accepted a Biden administration proposal to bridge differences with the Hamas for a ceasefire and the release of the remaining hostages held by the terror group in exchange for Palestinian security prisoners.

However, Hamas has publicly rejected the latest offer, leading Washington to become increasingly pessimistic while outwardly displaying signs of optimism that an agreement can be achieved.

Speaking ahead of meetings with Israeli Prime Minister Benjamin Netanyahu and President Isaac Herzog in Tel Aviv on Monday, Blinken said: “This is a decisive moment, probably the best, maybe the last opportunity to get the hostages home, to get a ceasefire, and to put everyone on a better path to enduring peace and security.”

The officials told Politico that the offer on the table is the strongest one yet, but that Hamas's rejections have "US officials increasingly worried that this proposal will falter just as earlier ones did, with Hamas and Israel at odds and no clear path to end fighting or bring hostages home."

US Special Coordinator for the Middle East Brett McGurk is heading to Cairo along with other negotiators to attempt to hammer out a final agreement.

Iran and its Lebanese terrorist proxy Hezbollah have reportedly threatened to attack Israel if an agreement is not reached. They had pledged revenge for the assassination of Hamas and Hezbollah leaders late last month, but were reportedly holding off on any retaliation so as not to be seen as scuppering a potential ceasefire.

“We don’t know if [Hamas leader in Gaza Yahya] Sinwar wants this deal,” one of the officials familiar with the U.S. position on the negotiations said. “But if we don’t get the deal there’s a chance that Iran attacks and this escalates into a full blown confrontation.”

Still, according to the Politico report, US officials are hopeful that a deal can still be had, with the possibility that Hamas will suddenly change its stance, as it has done previously.