The sources said Israel and Hamas could sign a ceasefire deal in the coming days to end the Gaza war and release hostages held by Hamas in exchange for Palestinian prisoners, but there were variables.
Hamas said in a statement on Tuesday that a deal was possible if Israel stopped making new conditions.
Earlier sources said Netanyahu would travel to Cairo, Egypt, on Tuesday for cease-fire talks. But a statement from his office said he met with top military and security officials Tuesday at Mount Hermon, a strategic plateau inside Syria.
Two Egyptian security sources said Netanyahu was not in Cairo at the moment but was holding meetings to discuss remaining issues. They are making progress and believe Tuesday night's meeting could be decisive for the next step.
Us and Israeli officials have been expressing increasing optimism that the talks brokered by Egypt and Qatar could reach an agreement by the end of the month, but have also warned that they could fail.
In an interview with Fox News, White House spokesman John Kirby said, "We believe - and the Israelis have said this - that we're getting there, and there's no question that we believe that, but we're also cautious about being optimistic." We've had failures before."
Israeli negotiators were in Doha on Monday seeking to bridge the gap between Israel and Hamas over the deal proposed by Biden on May 31.
Multiple rounds of negotiations have failed, with Israel insisting on maintaining a military presence in Gaza and Hamas refusing to release hostages until its troops withdraw.
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