Israeli Prime Minister Benjamin Netanyahu, left, and German Chancellor Friedrich Merz leave the podium following a joint press conference in Jerusalem on Sunday. (AP Photo/Ariel Schalit, Pool)

TEL AVIV, Israel (AP) — Israeli Prime Minister Benjamin Netanyahu said Sunday that Israel and Hamas are “very shortly expected to move into the second phase of the ceasefire,” after Hamas returns the remains of the last hostage held in Gaza.

Netanyahu spoke during a news conference with visiting German Chancellor Friedrich Merz and stressed that the second phase, which addresses the disarming of Hamas and the withdrawal of Israeli troops from Gaza, could begin as soon as the end of the month.

Hamas has yet to hand over the remains of Ran Gvili, a 24-year-old police officer who was killed in the Hamas-led Oct. 7, 2023, attack that sparked the war. His body was taken to Gaza.

The ceasefire’s second stage also includes the deployment of an international force to secure Gaza and forming a temporary Palestinian government to run day-to-day affairs under the supervision of an international board led by U.S. President Donald Trump.

A senior Hamas official on Sunday told The Associated Press the group is ready to discuss “freezing or storing or laying down” its weapons as part of the ceasefire in a possible approach to one of the most difficult issues ahead.

Netanyahu says second phase will be challenging

Netanyahu said few people believed the ceasefire’s first stage could be achieved, and the second phase is just as challenging.

“As I mentioned to the chancellor, there’s a third phase, and that is to deradicalize Gaza, something that also people believed was impossible. But it was done in Germany, it was done in Japan, it was done in the Gulf States. It can be done in Gaza, too, but of course Hamas has to be dismantled,” he said.

The return of Gvili’s remains — and Israel’s return of 15 bodies of Palestinians in exchange — would complete the first phase of Trump’s 20-point ceasefire plan.

Hamas says it has not been able to reach all remains because they are buried under rubble left by Israel’s two-year offensive in Gaza. Israel has accused the militants of stalling and threatened to resume military operations or withhold humanitarian aid if all remains are not returned.

A group of families of hostages said in a statement that “we cannot advance to the next phase before Ran Gvili returns home.”

Meanwhile, Israeli military Chief of Staff Lt. Gen. Eyal Zamir on Sunday called the so-called Yellow Line that divides the Israeli-controlled majority of Gaza from the rest of the territory a “new border.”

“We have operational control over extensive parts of the Gaza Strip and we will remain on those defense lines,” Zamir said. “The Yellow Line is a new border line, serving as a forward defensive line for our communities and a line of operational activity.”

Merz said Germany, one of Israel’s closest allies, is assisting with the implementation of the second phase by sending officers and diplomats to a U.S.-led civilian and military coordination center in southern Israel, and by sending humanitarian aid to Gaza.

The chancellor also said Germany still believes that a two-state-solution is the best possible option but that “the German federal government remains of the opinion that recognition of a Palestinian state can only come at the end of such a process, not at the beginning.”

The U.S.-drafted plan for Gaza leaves the door open to Palestinian independence. Netanyahu has long asserted that creating a Palestinian state would reward Hamas and eventually lead to an even larger Hamas-run state on Israel’s borders.

Netanyahu also said that while he would like to visit Germany, he hasn’t planned a diplomatic trip because he is concerned about an arrest warrant issued by the International Criminal Court, the U.N.’s top war crimes court, last year in connection with the war in Gaza.

Merz said there are currently no plans for a visit but he may invite Netanyahu in the future.