Hamas has agreed to release hostage Arbel Yehud from Gaza on Thursday, easing the first major crisis of the Middle East ceasefire deal.

Israel had complained that Ms Yehud, a civilian, was supposed to be released last Saturday, prompting a tit-for-tat exchange that threatened to derail the fragile peace settlement.

However, a statement from the Israeli prime minister’s office late on Sunday evening confirmed that following “strong and determined” negotiations led by Benjamin Netenyahu, a total of three hostages are to be released on Thursday.

Ms Yehud, Agam Berger, a soldier, and one more prisoner will all be freed, in exchange for Israel allowing Palestinians to return to the northern part of the strip on Monday, the prime minister’s office confirmed on Telegram.

Under the agreement, a further three hostages are to be released on Saturday, and Hamas will release a list confirming the status of all the hostages who are to be freed under the first phase of the ceasefire deal, the readout said.

It added that Israel “will not tolerate any violation of the agreement”, in a warning to Hamas about further breaches.

Under the Gaza ceasefire deal, female civilians are to be freed first, followed by female soldiers, the elderly, and those with health conditions.