UPDATE 2-Hamas to hand over body of another Israeli hostage held in Gaza

(Updates with Hamas, Israeli statements, paragraphs 1-5) Oct 17 (Reuters) – Hamas said on Friday it would transfer the body of another hostage to the Red Cross, with Israel confirming the handover would occur just after midnight on Saturday amid a dispute over delays in the return of remains under their ceasefire deal. Israel says it has received nine of 28 bodies held in Gaza, and Hamas, citing technical problems, said it needed heavy machinery and excavating equipment to speed up the process of locating bodies buried under rubble. Israel, insisting Hamas knows the whereabouts of the hostages' bodies, had said the group was running out of time. Hamas has said it remains committed to the ceasefire agreement and to handing over the bodies of all remaining hostages. In a statement on Friday, Hamas' armed wing said a new body had been recovered and would be released at 2300 local time. An Israeli security source said the handover to the Red Cross was scheduled for 0030 in Israel (2130 GMT). The issue has cast a shadow over the ceasefire agreement — the first phase of U.S. President Donald Trump's 20-point plan to end the war. Earlier on Friday, Hamas called on mediators to push for the next steps under the ceasefire, including reopening the border, letting in aid, beginning reconstruction, setting up an administration and completing Israel's withdrawal. Fighting has largely stopped in Gaza under Trump's plan, endorsed by mediators Egypt, Qatar and Turkey. The 20 living hostages taken with others in an October 7, 2023, Hamas assault on Israel, were returned from Gaza earlier this week. Israel said on Thursday it was preparing for the reopening of Gaza's Rafah crossing with Egypt to allow Palestinians to move in and out, but gave no date as it traded blame with Hamas over violations of the ceasefire. Other unresolved elements of the plan include the disarmament of militants and Gaza's future governance. (Reporting by Nidal Al-Mughrabi, Ahmed Elimam and Tala Ramadan Writing by Ahmed Elimam and Hatem Maher Editing by Peter Graff and Howard Goller)

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