The three-part proposal would begin with a six-week ceasefire in which the Israel Defense Forces (IDF) would withdraw from populated areas of Gaza, AzVision.az reports citing BBC.
There would also be a "surge" of humanitarian aid, as well as an exchange of some hostages for Palestinian prisoners.
The deal would eventually lead to a permanent "cessation of hostilities" and a major reconstruction plan for Gaza.
Hamas said it views the proposal "positively".
Speaking at the White House on Friday, Mr Biden said that the first phase of the proposed plan would include a "full and complete ceasefire", the withdrawal of IDF forces from populated areas and the exchange of hostages for Palestinian prisoners.
"This is truly a decisive moment," he said. "Hamas says it wants a ceasefire. This deal is an opportunity to prove whether they really mean it."
The ceasefire, he added, would allow more humanitarian aid to reach the beleaguered territory, with "600 trucks carrying aid into Gaza every single day".
The second phase would see all remaining living hostages returned, including male soldiers. The ceasefire would then become "the cessation of hostilities, permanently."
In his remarks, Mr Biden acknowledged that some Israelis - including officials within Israel's government - would likely be opposed to the proposal.
"I've urged the leadership in Israel to stand behind this deal," he said. "Regardless of whatever [political] pressure comes."
The US president also directly addressed the Israeli people, telling them that "we can't lose this moment".
Notably, Mr Biden said that Hamas has now been degraded to the extent that it can no longer repeat an attack such as that which its fighters conducted on 7 October - a likely signal to the Israelis that Washington sees the war as done.
AzVision.az
