An agreement has been reached between Israel and Hamas that involves the release of additional hostages and the return of Palestinians to the northern part of the Gaza Strip.

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.

Some troops had been expected to withdraw to allow hundreds of thousands of displaced Gazans to go home. But Israel said the hostage exchange before that step had not gone as agreed. Hamas accused Israel of stalling.