Three hostages, including British-Israeli girl Emily Damari have been released by Hamas.

The Red Cross says that Damari, alongside 31-year-old Doron Steinbrecher and 24-year-old Romi Gonenwere have been transferred to them and are on their way toward Israeli forces in the Gaza Strip.

An Israeli Defence Force (IDF) source told reporters the three hostages are in good health.

A senior Hamas official told reporters: "The three women hostages were officially handed over to the Red Cross at Al-Saraya Square in the Al-Rimal neighbourhood in western Gaza City. This occurred after a member of the Red Cross team met with them and ensured their well-being."

People gather in what's known as Hostages Square

Ezz Al-Din Al Qassam Brigades, the military wing of Hamas gather in al-Saraya before the prisoner swap processGetty

Ofer military prison, located between Ramallah and Beitunia in the occupied West BankGetty

Romi Gonen, Emily Damari and Doron Steinbrecher are set to be released

Hamas said it was expecting a list from Israel of the 90 Palestinian prisoners, including women and children, to be released on Sunday in exchange. Israeli Prime Minister Benjamin Netanyahu said the ceasefire would not commence until Israel received the names.

After receiving the list, his office confirmed in a statement the ceasefire had started, and that Israeli security personnel contacting the families of the hostages who would be released after 4pm.