Israel will allow the exile of Hamas leader Yahya Sinwar from the Gaza Strip in exchange for the release of all remaining 136 hostages, NBC reported on Thursday, citing six Israeli officials and senior advisers.

According to the report, Israeli officials have floated the idea of allowing Sinwar to "leave like [Yasser] Arafat left Lebanon."

Arafat fled the Lebanese capital of Beirut in 1982 after an agreement between the US and the European government guaranteed his safe passage to Tunisia by boat. Now, an Israeli source told NBC, Sinwar could be set to make a similar exit from the Gaza Strip.

"We will allow it to happen as long as all of the hostages are released," NBC cited a senior adviser to Prime Minister Benjamin Netanyahu as saying.