"They are negotiating to secure the release of the captives," the source said, confirming a report by the private TV channel Haberturk.

Dozens of people have been taken captive during Hamas's surprise attack on Israel.

Erdogan, who has offered to mediate to restore peace, has been stepping up talks with his Middle Eastern counterparts.

Late Wednesday he spoke with Saudi Arabia's Crown Prince Mohammed bin Salman and Algerian President Abdelmadjid Tebboune, the Anadolu state news agency reported.

It quoted Erdogan saying that on behalf of Turkey, "we are ready to do everything in our power", including mediation and "fair arbitration" to end the conflict quickly.

Earlier, sources told Ahram Online, that Egypt is exerting efforts to facilitate a prisoner exchange deal between Israel and Hamas. However, the source added "The situation remains highly sensitive and complex, and the success of these efforts is uncertain"