The Israeli government has confirmed the release of 20 hostages held by Hamas, as part of a US-backed hostage deal, alongside the release of 250 Palestinian prisoners serving life terms.

Of the released Palestinians, 135 will be deported abroad, while 14 will return to their homes in East Jerusalem. In exchange, Israel is set to release over 2,000 Palestinians held in Israeli prisons.

Despite a relatively smooth exchange, there had been reports of Israeli forces raiding Palestinians' homes in the West Bank.

As news broke of Hamas releasing the first batch of seven remaining hostages whom they had held in Gaza for more than two years, Israeli forces raided the home of Palestinian prisoner Ahmed Ka'abneh in Aqabat Jaber camp, south of Jericho, prior to his expected release under the ceasefire agreement, Wafa News Agency reported.

Israeli troops reportedly raided and searched Ka'abneh's home, warning his family against holding any celebrations or welcoming gatherings. Ka'abneh has been imprisoned by Israel since April 26, 1997, and is serving two life sentences plus six additional years.

In a separate incident, a Palestinian man was shot on the foot with live ammunition after Israeli forces suppressed a demonstration held by families gathered outside the Ofer military prison, located in the town of Beitunia, west of Ramallah, where they were waiting for the release of their relatives, Wafa news agency reported.

Israeli Prime Minister Benjamin Netanyahu said in a televised address on Oct 12 that the country's military campaign "is not over", as he hailed the planned release of the 20 remaining hostages as a "historic event", Xinhua News Agency reported.

Israeli military chief Eyal Zamir said the military "will continue to act in order to shape a security reality that ensures the Gaza Strip no longer poses a threat to the State of Israel and its civilians". "Through our operations, we are reshaping the Middle East and our security strategy for the years ahead," Zamir was quoted as saying by Xinhua.

In response to a reporter on board Air Force One en route to Israel, US President Donald Trump acknowledged that the US was aware that Hamas "is rearming in Gaza" and claimed the group had been given US approval to do so "for a period of time".

Trump said Hamas has "been open about it" and that "we gave them approval for a period of time", adding "you have to understand, they've lost probably 60,000 people", which he said was "a lot of retribution".

The US president also said they wanted to ensure returning residents could rebuild safely, describing Gaza as "literally demolished" and saying "a lot of bad things can happen" as people return.

The disarmament of Hamas was one of the main sticking points in the ceasefire deal, with negotiators divided on the how and when it should take place.