Mr Netanyahu said the cabinet passed a unanimous agreement: "If Hamas does not return our hostages by Saturday noon - the ceasefire will be terminated, and the IDF will return to intense fighting until Hamas is finally defeated.".
The Gaza ceasefire will end if Hamas does not return Israeli hostages by midday on Saturday, Israeli Prime Minister Benjamin Netanyahu has said.
Hamas said on Monday it would postpone the scheduled release of Israeli hostages, accusing Israel of violating the terms of the ceasefire agreement.
He said the cabinet "all expressed outrage at the shocking situation of our three hostages who were released last Saturday".
He warned of a return to "intense fighting" if the hostages are not released.