President Donald Trump said on Wednesday that Israel and Hamas had reached a long-sought deal for a Gaza ceasefire and hostage release under his plan for ending the two-year-old war in the Palestinian enclave.

"I am very proud to announce that Israel and Hamas have both signed off on the first Phase of our Peace Plan," Trump wrote in a social media post.

The deal means all Israeli hostages will be released soon and Israel will withdraw their troops to a withdrawal line, as "the first steps" toward a long-term peace, he added.

The deal, if implemented, would bring the two sides closer than any previous effort to halt a war that had evolved into a regional conflict, drawing in countries such as Iran, Yemen, and Lebanon, and reshaping the Middle East.

Israeli Prime Minister Benjamin Netanyahu said in a written statement, referring to the hostages held by Hamas: "With God's help we will bring them all home." He said he would convene his government on Thursday to approve the agreement.

Hamas confirmed it had reached an agreement to end the war, saying the deal includes an Israeli withdrawal from the enclave and a hostage-prisoner exchange. But the group called on Trump and guarantor states to ensure Israel fully implements the ceasefire, it added in a statement.

Trump said earlier that a deal was almost done and that he may travel to Egypt this weekend, possibly leaving as soon as Saturday.

Hostage Release Expected in Days

The living hostages would be handed over within 72 hours of the Israeli government approving the deal, Reuters reported, citing a Hamas source.

An Israeli government spokesperson said the hostage release was expected to begin on Saturday.

Netanyahu and Trump spoke by phone and congratulated each other on the agreement, and the Israeli prime minister invited the U.S president to address Israel’s parliament, according to Netanyahu's office.

Hamas said earlier on Wednesday that it had handed over its lists of the hostages it held and the Palestinian prisoners held by Israel that it wanted to be exchanged.

The list of Palestinians Hamas wants freed was expected to include some of the most prominent prisoners ever jailed by Israel, whose release had been off limits in previous ceasefires.

Next Steps

According to Trump's 21-point plan, further steps include the departure of Hamas from Gaza, the handover and the demilitarization of Gaza.

It also includes the creation of an international body led by Trump and with a role for former British Prime Minister Tony Blair in Gaza's post-war administration.

However, Hamas has so far refused to discuss Israel's demand that Hamas give up its arms, which the Palestinian source told Reuters that Hamas would reject as long as Israeli troops occupy Palestinian land.

Arab countries, which back the plan, say it must lead to eventual independence for a Palestinian state, which Netanyahu says will never happen.

There is no clear indication who will rule Gaza when the war ends. Netanyahu, Trump, Western and Arab states have ruled out a role for Hamas, which has run Gaza since driving out Palestinian rivals in 2007.