The Washington Post reported on Saturday that the release would be on the basis of a five day pause in fighting in the territory, citing peoplefamiliar with the deal.
However a White House spokesman says Israel and Hamas have not yet reached a deal on a temporary ceasefire.
The US is continuing to work to get a deal between the two sides, the spokesperson said, with a second US official confirming no deal had been reached.
According to the Washington Post report, under a detailed, six-page agreement, all parties would freeze combat operations for at least five days while "an initial 50 or more hostages are released in smaller groups every 24 hours".
Hamas took about 240 people hostage during its October 7 rampage across the border that left 1,200 dead.
In Israel's military response in Gaza , more than 11,500 Palestinians have been killed, according to local health authorities.
The newspaper said overhead surveillance would monitor ground movement to help police the pause, which also is intended to allow in a significant amount of humanitarian aid.
The hostage release could begin within the next several days, according to the newspaper's sources.
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