Hamas released three men who were captured on October 7 in exchange for more than 360 Palestinian prisoners held in Israel.
It comes after a period where many feared the ceasefire deal between Israel and Hamas would collapse, after the militant group accused the Israeli military of breaching the terms of the agreement.
The three men released were Russian-Israeli Alexander Troufanov, Argentinian-Israeli Yair Horn, and US-Israeli Sagui Dekel-Chen.
The trio were handed over to the Red Cross, surrounded by hundreds of Hamas fighters in Khan Younis early on Saturday morning.
Meanwhile, huge crowds gathered in Hostage Square to celebrate the release.
The Israeli Defence Force has since confirmed the hostages are on their way to Israel.
A statement read: "The 3 returning hostages are currently being accompanied by IDF and ISA forces on their return to Israeli territory, where they will undergo an initial medical assessment.
"The IDF salutes and embraces the returning hostages as they make their way home to the State of Israel."
In exchange, 369 Palestinian prisoners were released - four of which were rushed to hospital during the handover in "critical condition", according to humanitarian groups.
A former Palestinian prisoner, released as part of the sixth hostage-prisoner exchange, is escorted to hospital after arriving in the occupied West Bank city of Ramallah on February 15, 2025. Picture: Getty
The three Israeli men were forced to stand on stage prior to the handover, a moment described as a "despicable and cynical ceremony" by Israel’s PM Isaac Herzog.
"Completing a hostage deal is a human, moral, and Jewish imperative. We will continue to do everything in our power to bring back all our sisters and brothers from captivity in Gaza", he said.
Hamas said on Monday that it would not hand over the hostages this weekend, claiming Israel had violated ceasefire conditions.
Israeli PM Benjamin Netanyahu hit back at the militant group, threatening to end the ceasefire.
Hamas backed down on Thursday, following threats from President Donald Trump.
Hamas militants escort Israeli-Argentinian hostage Yair Horn. Picture: Getty
Since the ceasefire began 16 Israeli hostages, as well as five Thai hostages, have been released in exchange for 566 prisoners.
In total, the first six weeks of the ceasefire deal will see 33 Israelis released in exchange for 1,900 Palestinians being held in Israel.
Since Hamas attacked Israel on October 7, killing 1,200 people and taking 251 hostages, the IDF has engaged in a brutal bombardment of Gaza.
Palestinian militants escort Israeli-Russian hostage Sasha Trupanov. Picture: Getty
At least 48,200 people, the vast majority women and children, have been killed during Israel’s offensive.
Earlier this week, Donald Trump restated claims that the US will take control of Gaza and rebuild it, forcibly removing Gazans from their homes and relocating them elsewhere.
Trump reiterated his claim to the war-torn strip in a meeting with King Abdullah of Jordan on Tuesday, insisting that Gaza could somehow be emptied of all residents, controlled by the US and redeveloped as a tourist area.
"Palestinians will live safely in another location that is not Gaza," he said.
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