Israel says Hamas has handed over the first seven hostages to the Red Cross in the first phase of the Israel-Gaza ceasefire.
There are 48 hostages still in captivity, and 20 are believed to be alive.
According to the hostage families forum, those released are: Eitan Mor, Gali and Ziv Berman, Matan Engerst, Omri Miran, Guy Gilboa Dalal and Alon Ohel.
Families and friends of hostages broke out into wild cheers as Israeli television channels announced that the hostages were in the hands of the Red Cross.
Tens of thousands of Israelis are watching the transfers at public screenings across the country, with a major event being held in Tel Aviv.
The packed crowd in Hostages Square erupted in cheers as the names of the hostages to be released were read on local television. They clapped and chanted “bring them home now”.
The hostage release is the first stage of a ceasefire agreement with Israel, which is also set to release hundreds of Palestinians from Israeli jails.
All 1,966 Palestinian prisoners slated for release have boarded buses, according to officials involved in the operation.
Two hundred and fifty of these are expected to be released to the West Bank, Jerusalem and abroad.
The ceasefire deal between Israel and Hamas, the biggest step yet toward ending two years of war, aims to pave the way for a lasting peace under a 20-point plan by US President Donald Trump, who was due to land in Israel soon after the release.
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