Two hostages have arrived in Israel after Hamas turned them over to the Red Cross in southern Gaza.
According to Palestinian authorities, Israel has agreed to free scores of inmates in the fourth round of exchanges under the Gaza ceasefire agreement.
The militants released, Yarden Bibas, 35, and French-Israeli Ofer Kalderon, 54, to the Red Cross in Khan Younis after each climbed on a stage and waved to onlookers.
Both had been abducted during the Hamas-led attack on Israel on October 7 2023 that sparked the war.
Armed Hamas militants formed a line leading to the stage after chaotic crowds surrounded hostages during a handover on Thursday, angering Israel.
Another hostage, American-Israeli Keith Siegel, 65, is also set to be released on Saturday and expected to be handed over to the Red Cross in Gaza City to the north.
Red Cross vehicles have arrived at a site in Gaza City where Hamas is set to release Mr Siegel.
Originally from Chapel Hill, North Carolina, Mr Siegel was taken hostage from Kibbutz Kfar Aza, along with his wife, Aviva Siegel.
She was released during the 2023 ceasefire and has waged a high-profile campaign to free Keith and other hostages.
The truce, which began January 19, is aimed at winding down the deadliest and most destructive war ever fought between Israel and the Hamas militant group.
The fragile deal has held for nearly two weeks, halting the fighting and allowing for increased aid to flow into the tiny coastal territory.
A total of 33 Israeli hostages are expected to be freed in exchange for nearly 2,000 Palestinian prisoners during the truce’s initial six weeks.
Also on Saturday, wounded Palestinians are expected to be allowed to leave Gaza for Egypt through the Rafah crossing. It had been the only exit point for Palestinians during the war before Israel closed it in May.
A European Union civilian mission was deployed on Friday to prepare for the reopening of the crossing.
The reopening would mark another key step in the first phase of the ceasefire, which calls for the release of 33 hostages and nearly 2,000 prisoners, the return of Palestinians to northern Gaza and an increase in humanitarian aid to the devastated territory.
Israel and Hamas are set next week to begin negotiating a second phase of the ceasefire, which calls for releasing the remaining hostages and extending the truce indefinitely. The war could resume in early March if an agreement is not reached.
Israel says it is still committed to destroying Hamas, even after the militant group reasserted its rule over Gaza within hours of the latest ceasefire.