The acknowledgment follows comments made Sunday by Israeli Defense Force Chief of Staff Lt. Gen. Herzi Halevi, who claimed that Hamas was attempting to conceal the fate of Issa, the deputy commander of the terror group's military wing, after last week's strike.
According to an IDF statement, Faiq Mabhouh was hiding in a compound at Shifa, from which he operated and advanced terrorist activity.
Staff Sgt. Matan Vinogradov was from Jerusalem.
The accusation is the latest in a series of anti-Israel statements made by the foreign policy chief.
The prime minister reiterates that Israel would push on with its offensive in Gaza, including Rafah, while evacuating civilians from combat zones.
The negotiations would mark the first time both Israeli officials and Hamas leaders joined the indirect negotiations since the start of the Muslim holy month of Ramadan.
Lila Zucker enlisted in the IDF as a lone soldier after making aliyah from Arizona. After the outbreak of the Hamas war, she was the only female fighter of her unit to enter the Gaza Strip.
Netanyahu's Likud Party charges that "Israel is not a banana republic, but an independent and proud democracy."
A senior Israeli official tells Axios that although the number of prisoners Hamas is asking to release is still too high, "there is something to work with."
Military calls on international media to "only rely on credible information."
