Hamas has handed over three Israeli men held hostage in the Gaza Strip in exchange for more than 300 Palestinian prisoners held in Israeli jails.

The three are Iair Horn, 46, Sagui Dekel Chen, 36, and Alexander (Sasha) Troufanov, 29. All are dual nationals.

Mr Horn was abducted along with his brother, Eitan, who remains in captivity.

Iair Horn, Alexander (Sasha) Troufanov and Sagui Dekel Chen (Hostages Family Forum via AP)

Israel confirmed it had received the three hostages.

The military said in a statement that the three were with its forces.

They will be taken to Israel for medical treatment and to be reunited with relatives.

Among the most prominent of the more than 300 Palestinian prisoners set to be released is Ahmed Barghouti, 48, a close aide of militant leader and major Palestinian political figure Marwan Barghouti.

It is the latest indication that the fragile ceasefire deal, which teetered in recent days, will hold.

Nearly all the 73 remaining hostages are men, including Israeli soldiers, and about half are believed to be dead.

The two sides have carried out five swaps since the ceasefire began on January 19, freeing 21 hostages and over 730 Palestinian prisoners so far during the first phase of the truce.

The war could resume if no agreement is reached on the more complicated second phase, which calls for the return of all remaining hostages captured in Hamas’ attack on October 7, 2023, and an indefinite extension of the truce.