Israel had delayed the release of the prisoners until Hamas ended its 'humiliating ceremonies.'
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Israel released hundreds of Palestinian prisoners as Hamas handed over the bodies of four hostages to the Red Cross early on Thursday.
Israel said the caskets were delivered with the help of Egyptian mediators through an Israeli crossing and confirmed an identification process has begun.
At around the same time, a Red Cross convoy carrying dozens of released Palestinian prisoners left Israel’s Ofer prison headed for the West Bank town of Beitunia, where crowds of cheering families, friends and supporters were gathered.
A large crowd also gathered in the Gaza city of Khan Younis to greet hundreds of released Palestinian detainees.
The exchange comes days before the first phase of the ceasefire deal, which came into effect on January 19, comes to an end.
Israeli Prime Minister Benjamin Netanyahu had delayed the release of the prisoners until the “release of next hostages has been assured, and without the humiliating ceremonies,” which had brought the future of the truce into further doubt.