Speaking at a joint press conference with Netanyahu, Trump said they were "beyond very close" to forging an elusive peace deal and that he hoped Hamas militants would also accept it.
The White House released Trump's 20-point plan that calls for a ceasefire, a swap of hostages held by Hamas for Palestinian prisoners held by Israel, a staged Israeli withdrawal from the Palestinian enclave, Hamas disarmament and a transitional government led by an international body.
"I also want to thank Prime Minister Netanyahu for agreeing to the plan and for trusting that if we work together, we can bring an end to the death and destruction that we've seen for so many years, decades, even centuries and begin a new chapter of security, peace and prosperity for the entire region," Trump said.
In Netanyahu's fourth visit to the White House since Trump returned to office in January, the right-wing Israeli leader was looking to shore up his country's most important relationship after a slew of Western leaders formally embraced Palestinian statehood last week in defiance of the US and Israel.
Trump, who sharply criticised the recognition moves as a prize for Hamas, was seeking Netanyahu's agreement despite Israel's misgivings on parts of the plan.
It marked a stepped-up diplomatic effort from the US president, who vowed during the 2024 presidential campaign to quickly bring the conflict to a close and has since repeatedly claimed that a peace deal was near, only for it to fail to materialise.
Hamas' apparent absence from the negotiations has raised questions about the prospects for the latest initiative.
Washington presented its peace plan to Arab and Muslim states on the sidelines of the UN General Assembly last week, and Trump's main objective on Monday was to try to close the remaining gaps with Netanyahu.
The White House talks came as Israeli tanks on Monday thrust deeper into the heart of Gaza City.
Israel has launched one of its biggest offensives of the war this month, with Netanyahu saying he aims to wipe out Hamas.
The war has left much of Gaza in ruins and caused a major humanitarian crisis. Arriving by limousine, Netanyahu was greeted by Trump outside the White House doors with a handshake, a stark contrast to the Israeli Prime Minister's chilly reception when he spoke on Friday before the UN General Assembly, where scores of delegates walked out in protest.
Previous US-backed ceasefire efforts have fallen apart due to a failure to bridge the gap between Israel and Hamas, and Netanyahu has vowed to continue fighting until Hamas is completely dismantled.
