“The Israeli government is committed to the return of all abductees home,” the government said.
It added: “Tonight, the government approved the outline for the first stage of achieving this goal, according to which at least 50 abductees — women and children — will be released for 4 days, during which there will be a lull in the fighting.”
Israel also said it would extend the “respite” by an additional day for every 10 hostages freed.
The deal, which was announced shortly before 1am UK time, cannot go into effect for at least 24 hours to give time for Israeli judges to review potential legal challenges to the prisoner release. That means the first hostages would not be released until Thursday morning at the earliest.
Hopes child will be released by her birthday
It is thought 30 children, eight mothers and 12 more women will be handed over by Hamas during the four-day pause in hostilities.
Among those expected to be freed are three Americans, including American-Israeli hostage Abigail Edan, who turns four on Friday. Both her parents were murdered by Hamas during the October terror attack.
Abigail was in her father’s arms when he was shot by Hamas terrorists who later snatched her and members of a neighbouring family, according to Abigail’s great aunty Liz Hirsh Naftali.
Her older siblings witnessed the murder of their parents and only survived by hiding in a wardrobe.
“For our family, we have spent the last seven weeks...worrying, wondering, praying, hoping,” Ms Naftali told CNN.
“The one thing that we all hold on to is that hope now that Abigail comes home, she comes home by Friday...her 4th birthday. We need to see Abigail come out and then we will be able to believe it.”