If the identity of the deceased hostage is confirmed, it would mean the remains of 12 hostages are still in Gaza.
Palestinian militant group Hamas say there are obstacles to locating them in the rubble left by the fighting.
Hamas' armed wing had earlier said it would hand over the body of a deceased hostage it recovered on Monday in Gaza. The recovery and handover of bodies of deceased hostages in Gaza has been one of the obstacles to US President Donald Trump's Gaza plan.
An Israeli government spokesperson said on Sunday the Palestinian militant group knew where the bodies were.
Israel on Sunday allowed the entry of an Egyptian technical team to work with the Red Cross to locate the bodies.
The team will use excavator machines and trucks for the search beyond the so-called yellow line in Gaza behind which Israeli troops have initially pulled back under Trump's plan.
Israeli Foreign Minister Gideon Saar said on Monday Israel will not allow Turkish troops to take part in an international peace force which the United States is seeking to create to oversee the ceasefire agreement.
The 20-point truce deal brokered by Trump earlier in October envisages an international task force to monitor the ceasefire but does not mention which nations would provide the troops.
It only says the US would "work with Arab and international partners to develop a temporary International Stabilisation Force" that would deploy in the Gaza Strip.
The force would train and provide support to "vetted Palestinian police forces" in the Gaza Strip and will "consult with Jordan and Egypt who have extensive experience in this field".
The creation of the task force is under way, according to US officials.
But the second phase of the ceasefire agreement has not yet begun, Israeli officials said.
Speaking to journalists during a visit to Hungary, Saar said Israel opposes the participation of Turkey because of President Recep Tayyip Erdogan's hostility to Israel.
Saar said Israel has communicated its opposition to Turkey's military involvement to US officials.
"Countries that want or are ready to send armed forces should be at least fair to Israel," Saar said.
US officials have said there would be no US boots on the ground in the strip.
During their visits to Israel last week, US Vice President JD Vance and Secretary of State Marco Rubio said several countries would be interested in joining an international force that would deploy to the Gaza Strip and train a Palestinian police force for the future.
The US was working to secure a United Nations mandate or other international authorisation for the force, Rubio said.
with AP
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