Doha, Feb. 7 -- Hamas has proposed a ceasefire plan that would quiet the guns in Gaza for four-and-a-half months, during which all hostages would go free, Israel would withdraw its troops from the Gaza Strip and an agreement would be reached on an end to the war.

The militant group's proposal - a response to an offer sent last week by Qatari and Egyptian mediators - comes in the biggest diplomatic push yet for an extended halt to the fighting, and was met with hope and relief in the Gaza Strip.

There was no immediate public response from Israel, which has said it will not pull its troops out of Gaza until Hamas is wiped out.

According to a draft document seen by Reuters, the Hamas counterproposal envisages three phases of a truce, last...