The Israeli military's chief of staff demanded on Thursday that his country go ahead with a deal with Hamas that would guarantee the release of Israeli captives, according to two sources.
Herzi Halevi's move during a security discussion prompted Prime Minister Benjamin Netanyahu to end the session, the sources cited by Israeli news website Walla reported.
Discussions started at 11pm local time (8pm GMT), with Defence Minister Yoav Gallant, the heads of the Mossad and Shin Bet intelligence agencies, and other senior security officials also in attendance.
It comes as a Gaza ceasefire deal has still yet to be reached after more than nine months of an Israeli war that has killed at least 38,919 people in the Palestinian enclave, according to its health ministry.
Halevi made clear that a deal with Hamas is necessary to achieve the goals of the Gaza war, and especially given the situation the Israeli military is in at this stage, according to sources who spoke with Walla.
He said there is no reason preventing "Israeli from returning to fighting in Gaza, but it what's important is to reach an agreement now".
A Hamas-led 7 October attack on Israel resulted in the deaths of 1,195 people, according to an AFP tally based on Israeli figures. Of 251 captives taken, 116 are still in Gaza, including 42 whom the Israeli military says are dead.
Netanyahu "halted the discussion half an hour after Halevi's remarks, and said it was late and he was tired", according to the sources.
Another informed source said Netanyahu held two consecutive security discussions on Thursday evening and requested to continue the discussion on Sunday.
It comes as US Secretary of State Antony Blinken said on Friday that a deal for a ceasefire in Gaza and release of remaining hostages by Hamas is near the "goal line".
"I believe we're inside the 10-yard line and driving toward the goal line" on an "agreement that would produce a ceasefire, get the hostages home, and put us on a better track to trying to build lasting peace and stability", Blinken said at a forum in Colorado.
Agencies contributed to this report.