Israeli Prime Minister Benjamin Netanyahu says dozens of Hamas militants have surrendered, encouraging more of them to do so.
But Hamas denies this, calling the claim “false and baseless”.
The group says Israel would not be able to recover remaining hostages by force, only through negotiations.
Hamas also said it destroyed 180 Israeli military vehicles without producing evidence.
Mr Netanyahu had said on Sunday dozens of Hamas militants had surrendered, calling it the beginning of the end for the organisation.
“Surrender — now,” he said in a televised statement.
Reporting with Reuters