Israel on Thursday announced that the final draft of the first phase of a Gaza ceasefire and hostage release deal with Hamas had been signed by all parties in Egypt, marking a crucial breakthrough toward ending the two-year war.

“The final draft of phase one was signed this morning in Egypt by all parties to release all the hostages,” Israeli government spokeswoman Shosh Bedrosian told journalists.

She said the ceasefire would take effect “within 24 hours” following a meeting of Israel’s security cabinet scheduled for Thursday at 1400 GMT, during which the plan is expected to be approved.

“Now phase one stands very clear: all of our hostages, the living and the deceased, will be released 72 hours later, which will bring us to Monday,” Bedrosian said.

She added that once the cabinet gives its approval, the Israel Defense Forces will “redeploy to the yellow line” marked on military maps. “After this 24-hour period, the 72-hour window will begin, where all of our hostages will be released back into Israel,” she explained.

President Trump reiterated Bedrosian’s words, saying that all of the remaining Israeli hostages held in Gaza would likely be released on Monday or Tuesday as part of the peace deal.

A full government meeting is expected to follow the cabinet session at 1500 GMT.

The development comes as Israel and Hamas reached a broader ceasefire and hostage exchange deal under the mediation of US President Donald Trump, as part of his 20-point peace plan unveiled last month. The agreement, signed in Egypt’s Sharm El-Sheikh, also includes expanded humanitarian aid to Gaza and a gradual Israeli troop withdrawal.

A Hamas source confirmed that the first phase would see the release of 20 living hostages in exchange for nearly 2,000 Palestinian prisoners, with the swap expected within 72 hours of implementation. Trump told reporters he anticipated “all the hostages will be coming back on Monday.”

Qatar, which helped broker the deal, described it as the “first phase” of a wider effort to end the war, release detainees, and allow sustained aid delivery into Gaza.

Under the agreement, Hamas will free the remaining 47 hostages — both living and deceased — captured during its October 2023 attack on Israel. In return, Israel will release 250 Palestinians serving life sentences and 1,700 others detained during the conflict.

Israeli Prime Minister Benjamin Netanyahu welcomed the progress, saying he would bring the hostages home “with God’s help.”

Trump, who hinted he may travel to the region soon, described the deal as “very close.”

News of the agreement triggered celebrations in Gaza and Tel Aviv, where families of hostages and displaced residents expressed cautious relief. “Tears of joy flowed,” said Samer Joudeh, a displaced Palestinian. “Two years of bombing, terror, destruction, loss, humiliation — now we finally feel like we’re getting a moment of respite.”

The war, which began after Hamas’s assault that killed 1,219 people in Israel and saw 251 hostages taken, has since claimed more than 67,000 lives in Gaza, according to the territory’s health ministry. The UN says most of the victims are women and children.

Despite the ceasefire announcement, Gaza’s civil defence agency reported several new strikes on Thursday.

Trump’s broader peace plan envisions the eventual disarmament of Hamas and the creation of a transitional authority for Gaza under his oversight, though talks on that phase are ongoing.

Hamas negotiator Khalil al-Hayya said the group seeks “guarantees from President Trump and the sponsor countries that the war will end once and for all.”

Among the high-profile prisoners Hamas hopes to secure is Marwan Barghouti, a senior figure from the rival Fatah movement.

The agreement comes amid mounting global pressure to end the conflict, with humanitarian agencies warning of famine in Gaza and international outrage over civilian casualties. Both Israel and Hamas have denied allegations of war crimes.