Friends and family members welcome their relatives released from Israeli prisons, as they arrive at Ramallah Cultural Palace in the West Bank city of Ramallah, Palestine, Feb. 27. EPA-Yonhap

Hamas handed over the bodies of four Israeli hostages while it waited for hundreds of Palestinian prisoners to be released by Israel in return, in an overnight exchange marking the final swap as part of a fragile truce in Gaza.

The ceasefire came into effect on Jan. 19 and has largely held, despite numerous setbacks. But its first phase is due to end this week and the fate of its next phase, which aims to end the war, remains unclear. Hamas said that it has not received any proposals so far.

After days of impasse, Egyptian mediators secured the handover of the bodies of the final four hostages in the deal's first phase, for 620 Palestinians either detained by Israeli forces in Gaza or jailed in Israel.

Israel had refused to release prisoners on Saturday after Hamas handed over six hostages in a staged ceremony.

Hamas had been displaying living hostages and coffins carrying hostage remains on stage in front of a crowd in Gaza before handing them over, to sharp criticism including from the United Nations.

The final handover did not include such a ceremony.

Israel received coffins carrying the remains of the four hostages, Prime Minister Benjamin Netanyahu's office said in the early hours of Thursday.

Hamas had previously identified the bodies as those of Tsachi Idan, Itzhak Elgarat, Ohad Yahalomi and Shlomo Mantzur, all of whom were abducted during the Oct. 7, 2023 attack from their kibbutz homes near Gaza.

The bodies were undergoing initial identification in Israeli territory and official notice would be given to the hostages' families once the process is complete, Netanyahu's office said in a statement.

The handover agreement had also been held up previously after Hamas handed over the remains of an unidentified woman instead of Shiri Bibas, before delivering the correct body the next day.

A full forensic examination to determine cause of death for the final four will come later, according to the Israeli health ministry.

Around 30 hostages have been killed in Gaza, according to Israeli authorities. Some were slain by their captors and some were killed in Israel's offences.

Friends and family members welcome their relatives released from Israeli prisons, as they arrive at Ramallah Cultural Palace in the West Bank city of Ramallah, Palestine, Feb. 27. EPA-Yonhap

Freed Palestinian detainees

The Palestinian detainees due to be released include 445 men and 24 women and minors arrested in Gaza, as well as 151 prisoners serving life sentences for deadly attacks on Israelis, according to a Hamas source.

A bus carrying some of the released Palestinian prisoners left Israel's Ofer prison in the occupied West Bank and arrived in the Palestinian city of Ramallah a few minutes later, live footage showed.

The group got off the bus to cheers from hundreds congregated outside, with some of the released men — clad in green jackets and keffiyehs — hoisted aloft by the crowd.

Released prisoner Bilal Yassin, 42, told Reuters he had been in Israeli detention for 20 years. The West Bank native said he had faced oppression and poor conditions the entire time.

"Our sacrifices and imprisonment were not in vain," Yassin said. "We had confidence in the (Palestinian) resistance."

It was not immediately clear when the next detainees would be released.

The first phase of the ceasefire included the exchange of 33 Israeli hostages in total for around 2,000 Palestinian prisoners and detainees, and the withdrawal of Israeli troops from some positions in Gaza as well as an influx of aid.

But with the 42-day truce due to expire on Saturday, it remains unclear whether an extension that could see more of the 59 remaining hostages go free will happen or whether negotiations can begin on a second stage of the deal. (Reuters)