Before their release, the hostages, four female soldiers, were led onto a stage in Gaza City, surrounded by masked, uniformed fighters.

Israel is set to release 200 Palestinian prisoners or detainees later in the day as part of the ceasefire in the Gaza Strip.

Hamas released four hostages and Israel 200 Palestinian prisoners as the latest cease-fire exchange occurred on Saturday.

The return of fighters to Gaza streets highlights how Israeli bombardment has failed to achieve Netanyahu’s goal or eradicating Hamas as a political force.

The hostage exchange is the second since the current ceasefire agreement. It is expected that by the end of the first phase of the deal's completion, 33 Israeli hostages will have been freed in exchange for the release of around 1,900 Palestinian detainees.

Mughrabi and Ali Sawafta CAIRO/Ramallah (Reuters) -Thousands of Palestinians chanted praise of Hamas on Saturday as they welcomed prisoners freed under a ceasefire deal between the militant group and Israel that saw four Israeli hostages also return home.

The hostages were freed in a heavily staged handover, ahead of the expected release of 200 Palestinian prisoners.

Israel is preventing movement to the north of Gaza until plans are set for the release of Arbel Yehud, one of the last civilian women held in Gaza.

In some footage, they were taunted by their Hamas captors. Now, Liri Albag, 19; Karina Ariev, 20; Danielle Gilboa, 20; and Naama Levy, 20, are back in Israel, released by Hamas on Saturday in return for Palestinian prisoners.

Israel and Hamas accused each other of breaching the terms of the ceasefire deal on Saturday after four more hostages were released from Gaza.

The release of four female soldiers from Hamas captivity came at a great cost for Israel, which released 200 Palestinian prisoners as part of the ceasefire deal.