JERUSALEM/TEL AVIV/GAZA (Reuters) -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 January 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 on Thursday that it was ready to start talks on the second phase, and that the only way remaining hostages would be freed is through commitment to the ceasefire.
After days of impasse, Egyptian mediators on Wednesday 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 October 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 Palestinian woman instead of Shiri Bibas, before delivering the correct body the next day. The unidentified woman's body was sent back to a Gaza hospital on Thursday, medics said.
A full forensic examination to determine cause of death for the final four bodies returned to Israel 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.
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 a handful of the released Palestinian prisoners left Israel's Ofer prison in the occupied West Bank and arrived in the Palestinian city of Ramallah shortly after, 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."
Nearly 100 more Palestinian prisoners were handed over to Egypt, where they will stay until another country accepts them, according to a Hamas source and Egyptian media.
Ambulances later arrived at the European Hospital in Khan Younis, in southern Gaza, early on Thursday transporting freed Palestinians, who are set to undergo medical examination.
In total, 580 prisoners and detainees will be freed in Gaza, according to Hamas. Buses escorted by the Red Cross are expected to arrive in coming hours.
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.