Hamas is pressing Israel to include prominent Palestinians in a prisoner-release list - part of a ceasefire deal that will also see hostages returned from Gaza.
Hamas's insistence comes after the Israeli justice ministry published the names of 250 prisoners to be freed, but excluded seven high-profile prisoners, including Marwan Barghouti and Ahmad Saadat.
The men, who are serving sentences after being convicted of involvement in separate deadly attacks in Israel, have long been seen by Palestinians as symbols of resistance.
Twenty Israeli hostages are expected to be released before 12:00 (09:00 GMT) on Monday as part of the deal proposed by US President Donald Trump.
A senior Palestinian official familiar with the talks stated that US envoy Steve Witkoff had promised to discuss the exclusion of the Palestinian prisoners with Israeli Prime Minister Benjamin Netanyahu; however, Israel has firmly refused to include them.
This situation could become a sticking point, impacting the timeline for the release of hostages from Gaza and the Palestinian prisoners held in Israeli jails.
The releases are due to take place in the first phase of Trump's ceasefire and hostage return deal, approved this week to end the two-year war in Gaza.
Hamas had submitted a list of prisoners it wanted released that included Barghouti and Saadat. Barghouti, a highly popular Palestinian leader, is serving five life sentences and 40 years for his involvement in attacks resulting in civilian casualties.
Saadat, leader of the Popular Front for the Liberation of Palestine, received a 30-year sentence after being convicted for actions including the assassination of an Israeli minister.
The situation remains fluid, as Israel prepares for the return of hostages, and families anxiously await news.