Thousands of Palestinians began returning to a ravaged northern Gaza and what was left of their homes and families, after Hamas agreed to release more hostages than expected this week to keep its cease-fire with Israel in place.

Palestinian militant group Hamas will hand over female Israeli hostage Arbel Yehud and two other hostages before Friday, mediator Qatar said on Sunday, and Israel said it would allow residents of the northern Gaza Strip to go back home early on Monday.

As thousands of Israelis came to cheer the helicopter bringing back four female hostages from Gaza on Saturday, it was a bitter-sweet moment as the nation also mourned those left behind.

Israel and Hamas accused each other of breaching the terms of the ceasefire deal on Saturday after four more hostages were released from Gaza.

Israelis celebrated on Saturday the release of four Israeli soldiers held hostages in Gaza for the past 15 months, with scenes of jubilation in Tel Aviv where crowds gathered in a public square to watch the release broadcast live on screens.

The hostages were released in a staged handover that saw them surrounded by Hamas gunmen and crowds of civilians.

The Palestinian militant movement Hamas is expected to release four female Israeli soldiers on Saturday in exchange for a group of Palestinian prisoners under a ceasefire agreement aimed at ending the 15-month-old war in Gaza.