TERRORIST group Hamas has announced it will release the last living American hostage in Gaza in a bid to establish a ceasefire.

Edan Alexander, an Israeli-American soldier who grew up in the US was abducted from his base during the October 7 terror attack.

A source familiar with the matter said Alexander would likely be released on Tuesday.

It is part of efforts to reach a ceasefire agreement and allow humanitarian aid to enter the besieged enclave, the Palestinian terror group said.

An additional official, Khalil al-Hayya, the exiled leader of Gaza’s Hamas, noted that Qatar, Egypt, and Turkey have been working together to support the release efforts.

There was no immediate comment from the Israeli prime minister’s office on the announcement.