After a meeting extending late into Thursday night, the Israeli government approved a plan for a ceasefire in Gaza and the release of hostages.

"The government has just approved the framework for the release of all the hostages — both the living and the deceased," a statement Israeli Prime Minister Benjamin Netanyahu's office said.

Netanyahu called it "a great day for Israel."

The ceasefire is expected to come into effect immediately. The initial phase of the plan involves the release of all 20 living hostages, and the remains of 28 others believed to be dead.

In exchange, Israel has agreed to release about 2,000 Palestinian prisoners and the retreat of Israeli troops from about half of Gaza. The agreement was achieved through indirect talks in Egypt, based on a 20-point framework offered by US President Donald Trump.

Once the exchange of hostages and prisoners is complete, a second phase would see aid begin flowing back into Gaza, which will then be governed by a transitional committee responsible for the day-to-day running of public services.

The deal also has the support of many Western and Arab countries, which will discuss an international peacekeeping force and reconstruction assistance for Gaza.

The international community has expressed hope for peace and urged Israel and Hamas to fulfill their commitments after the two parties agreed to the "first phase" of a deal signaling a breakthrough in the two-year conflict in Gaza.

Hamas also confirmed the accord, but called on Trump and the guarantor states to ensure that Israel fully implements the ceasefire.