Israeli Prime Minister Benjamin Netanyahu rejected Hamas' terms for a ceasefire and hostage release deal, calling them "delusional".
Netanyahu vowed to continue Israel's war against Hamas, now in its fifth month, until "absolute victory" is achieved.
Stating that the operation will last months, not years, Netanyahu said, "We are heading towards an absolute victory. There is no other solution."
"Giving in to the delusional demands of Hamas, which we are hearing now, will not lead to the release of prisoners and will invite a new massacre," Israeli Prime Minister Netanyahu said in a nationally televised press conference in the evening.
Tough stance could complicate efforts
Netanyahu's hard line is expected to complicate efforts by both sides to reach an agreement that could ease the devastating conflict in Gaza and return Israeli hostages to their homes.
The Hamas plan, brokered by the United States, Qatar and Egypt, calls for a four-and-a-half-month suspension of hostilities, during which time all hostages would be released and Israel would withdraw its troops from Gaza.
Israel, which has made the destruction of Hamas' leadership and military capabilities one of its war aims, argues that the proposal would leave Hamas effectively in power in Gaza and allow it to rebuild its military capabilities.