Palestinians carry bags containing food and humanitarian aid packages delivered by the Gaza Humanitarian Foundation in Khan Younis, southern Gaza Strip, on Sunday.

GAZA CITY — Hamas said on Saturday it had replied to a US-backed Gaza ceasefire proposal, but Washington's main negotiator criticized the response as "totally unacceptable".

The Palestinian militant group said its response was positive while emphasizing the need for a permanent ceasefire — long a sticking point for Israel.

Israeli Prime Minister Benjamin Netanyahu echoed US envoy Steve Witkoff's assessment that the response was "unacceptable", accusing Hamas of clinging "to its rejectionism".

Israel on Friday warned Hamas to either accept the deal and free the hostages held in Gaza, "or be annihilated".

In a statement on Saturday, Hamas said it had "submitted its response...to the mediating parties".

"As part of this agreement, 10 living prisoners of the occupation held by the resistance will be released, in addition to the return of 18 bodies, in exchange for an agreed-upon number of Palestinian prisoners," it said.

A source within the group's political bureau said it had offered "a positive response to Witkoff, but with emphasis on guaranteeing a permanent ceasefire and full Israeli withdrawal" from the Gaza Strip.

Witkoff said Hamas' response was "totally unacceptable and only takes us backward", urging the group to "accept the framework proposal we put forward".

Meanwhile, Gaza rescuers said Israeli gunfire killed at least 31 Palestinians near a US-backed aid distribution site on Sunday.

Witnesses said Israeli forces fired on crowds around 1 kilometer away from the aid site in the southern city of Rafah.

Earlier, the Palestinian news agency WAFA and Hamas-affiliated media put the number of deaths at 30. Local health authorities said at least 31 bodies had so far arrived at Nasser Hospital.

The army released a brief statement saying it was "unaware of injuries caused by (Israeli military) fire within the humanitarian aid distribution site", and the matter is still under review.