Israel will allow gradual and controlled entry of goods to Gaza through local merchants, COGAT, the Israeli military agency that coordinates aid, said on Tuesday, Reuters reported.

"This aims to increase the volume of aid entering the Gaza Strip, while reducing reliance on aid collection by the U.N. and international organisations," the agency said.

On Sunday, Hamas said it was prepared to coordinate with the Red Cross to deliver aid to hostages it holds in Gaza, if Israel meets certain conditions, after a video it released showing an emaciated captive drew sharp criticism from Western powers, according to Reuters.