Mohammad Deif is "fine" after Israel's Saturday's strike targeting the leader, a Hamas official told AFP.
The source reportedly added that the hostage deal negotiations were set to "halt."
Hamas later released a statement on its official Telegram channel denying the claims that the negotiations would "halt." "What was published by the French News Agency and circulated by some media outlets about a decision by the Hamas movement to halt negotiations in response to the Al-Mawasi massacre west of Khan Yunis," was baseless, the statement read.
Deif's death yet unconfirmed
On Saturday, the IDF targeted the Izzadin al-Qassam Brigades' chief in the al-Mawasi area of Khan Yunis in southern Gaza.
While Deif has not been confirmed as killed, Saudi media reported on Sunday, citing Hamas sources, that Hamas's Khan Yunis Brigade commander Rafa Salama, who was with Deif at the time of the strike, had been eliminated.
According to the Arabic news outlet Asharq Al-Awsat on Saturday, citing Hamas sources, Muhammad Sinwar, brother of Hamas chief in Gaza Yahya Sinwar, is set to replace Mohammad Deif as the head of the Izzadin al-Qassam Brigades if the latter is confirmed killed.
Earlier on Sunday, KAN news reported, citing a diplomatic source involved in the negotiations, that despite the developments in Gaza, Mossad chief David Barnea was set to travel to Qatar this week for the hostage deal negotiations.
Channel 12 later cited Hamas spokesperson Jihad Taha as saying, "The negotiations were stopped a few days ago as a result of the Israeli lack of compliance and the insistence on placing conditions outside of the offer that was agreed upon."
Sam Halpern, Danielle Greyman-Kennard, Yonah Jeremy Bob, and Walla contributed to this report.
This is a developing story.