Prime Minister Benjamin Netanyahu was "gambling" on the lives of the hostages, a security source said on Friday, according to KAN, Israel's Public broadcasting company.
The security source reportedly criticized Netanyahu for wanting to push Hamas to make more concessions during the hostage deal negotiations.
"It's a big bet that you take on people who may not be alive. And it's not only about them - but also for the residents of the North who are waiting to return home. We need to focus on their arena as well."
Reports of new proposed deal
On Saturday, the Hezbollah-affiliated Al-Mayadeen claimed that Hamas was adamant in its demands of complete Israeli withdrawal from the Gaza Strip, including the Philadelphi corridor.
Netanyahu has previously said that Israeli control of the corridor was "essential."
On Saturday, Israel submitted an updated hostage deal proposal, according to a Walla report.
According to the report, the new deal would include the creation of a mechanism that would oversee and bar the transfer of weapons between northern and southern Gaza.
Furthermore, the report added that senior security officials and members of the negotiating teams did not believe Hamas would approve these new conditions.
Sam Halpern and Walla contributed to this report.