A senior Hamas official has refused Donald Trump’s proposal to have a “Board of Peace” transitional administration which will oversee post-war Gaza.

The board would be headed by the US President himself and former Prime Minister Tony Blair.

Hamas official Osama Hamdan, who has been involved in previous negotiations between the terrorist group and the US, said no Palestinian faction would ever accept such a plan.

“All the factions, including the Palestinian Authority, reject this,” he told a local Qatar television network on Thursday.

A ceasefire has been agreed by Israel and Hamas in Gaza which will allow for the release of the remaining hostages held inside the strip in exchange for hundreds of Palestinian prisoners.

The plan, unveiled by Mr Trump on September 29, also called for post-war Gaza to be governed by a transitional authority, including himself and Sir Tony.

Mr Trump did not address the spokesman’s refusal during his live-streamed cabinet meeting on Thursday.

However, he said disarmament would be part of the second phase.

Israel has insisted that Hamas needs to give up its weapons.

“There will be a disarming,” the US President said.

He added that Israeli forces would be required to conduct “pullbacks” as well.

Discussing the prospect of a two-state solution, Mr Trump said he would follow whatever was ultimately agreed.

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“I don’t have a view. I’m going to go with what they agreed to,” he said.

Mr Trump said the possibility of a Palestinian state would be looked at in time.

“We’re going to see how it all goes,” he said on Thursday evening during a bilateral meeting with Finland President Alexander Stubb.

“There’s a point at which we may do something that would be a little bit different, and maybe very positive for everybody.

“We’ll be looking at that at the time. I think we will get there.”

Mr Trump said Palestinians can expect that “we’re going to create something where people can live”.

“We’re going to create better conditions for people,” he added.

Exiled leader of Hamas, Khalil al-Hayya, told the Palestinian people in a speech that Israel and Hamas had “reached an agreement to end the war and the aggression against our people”.

He also said Hamas had received guarantees from the US, Arab mediators and Turkey that the war had ended for good.

The hostage and prisoner releases were outlined in a multi-step process where the IDF (Israeli Defence Forces) would begin pulling its forces back once Israel’s cabinet had approved the plan.

After it withdraws to an agreed line – which would see Israel in control of about 53 per cent of the Gaza strip – Hamas would be required to release the 48 hostages within 72 hours.

The process will start with the 20 who are believed to still be alive and handed to the Red Cross.

The Palestinian prisoners will be released after the 72-hour period.