TEL AVIV – Israel and Hamas agreed to pause fighting in Gaza to free the remaining hostages in exchange for Palestinian prisoners, accepting elements of a plan put forward by the Trump administration that Palestinians greeted warily Thursday as a possible breakthrough toward ending the devastating two-year-old war.

“This means that ALL of the Hostages will be released very soon, and Israel will withdraw their Troops to an agreed upon line as the first steps toward a Strong, Durable, and Everlasting Peace,” President Donald Trump wrote on social media late Wednesday. “All Parties will be treated fairly!”

Alaa Abd Rabbo, originally from northern Gaza but forced by the fighting to move multiple times, called the deal “a godsend.”

“We are tired, we have been displaced and this is the day we have been waiting for,” he said from the central city of Deir al-Balah. “We want to go home.”

In Tel Aviv, families of the remaining hostages popped Champagne and cried tears of joy when the deal was announced.

Under the terms, Hamas intends to release all 20 living hostages in a matter of days, while the Israeli military will begin a withdrawal from the majority of Gaza, people familiar with the matter told The Associated Press on condition of anonymity to discuss details of an agreement that has not fully been made public.

Uncertainty remains about some of the thornier aspects — such as whether and how Hamas will disarm, and who will govern Gaza — but the sides appear closer than they have been in several months to ending a war that has killed tens of thousands of Palestinians, destroyed most of Gaza and triggered other armed conflicts across the Middle East. The war, which began with Hamas’ deadly attack on Israel on Oct. 7, 2023, has sparked worldwide protests and brought allegations of genocide that Israel denies.

Talks to hammer out a deal have been underway in Egypt since the start of the week, and the breakthrough emerged at the end of the third day of negotiations.

“With God’s help we will bring them all home,” Israeli Prime Minister Benjamin Netanyahu proclaimed on social media shortly after Trump’s announcement. Netanyahu said he would convene the government on Thursday to approve the deal.

Hamas called on Trump and the mediators to ensure that Israel implements “without disavowal or delay” the withdrawal of troops, the entry of aid into the territory and the exchange of prisoners.

Ahmed al-Farra, the general director of pediatrics at the Nasser Hospital in Khan Yunis, which has seen many of the casualties of the war, said he was still skeptical of Israel following through on the deal based on his past experiences, but held out hope.

“We need to go back to living,” he said.

Trump’s peace plan

The Trump plan calls for an immediate ceasefire and release of the 48 hostages that militants in Gaza still hold from their attack on Israel two years ago. Some 1,200 people were killed by Hamas-led militants, and 251 were taken hostage. Around 20 of the hostages are believed to still be alive.

In an interview on Fox News, Trump said Hamas will begin releasing hostages “probably” on Monday.

“This is more than Gaza,” he said. “This is peace in the Middle East.”

Under the plan, Israel would maintain an open-ended military presence inside Gaza, along its border with Israel. An international force, comprised largely of troops from Arab and Muslim countries, would be responsible for security inside Gaza. The U.S. would lead a massive internationally funded reconstruction effort in Gaza.

The plan also envisions an eventual role for the Palestinian Authority — something Netanyahu opposes. But it requires the authority, which administers parts of the West Bank, to undergo a sweeping reform program that could take years to implement.

The Trump plan is even more vague about a future Palestinian state, which Netanyahu and his family firmly reject.

Even with many details yet to be agreed, some Palestinians and Israelis expressed happiness and relief at the significant progress.

“It’s a huge day, huge joy,” Ahmed Sheheiber, a Palestinian displaced man from northern Gaza, said of the ceasefire deal.

Crying over the phone from his shelter in Gaza City, he said he was waiting “impatiently” for the ceasefire to go into effect to return to his home in the Jabaliya refugee camp.

Joyful hostage families and their supporters spilled into the central Tel Aviv square that has become the main gathering point in the struggle to free the captives.

Einav Zangauker, the mother of Israeli captive Matan Zangauker and a prominent advocate for hostages’ freedom, told reporters that she wants to tell her son she loves him.

“If I have one dream, it is seeing Matan sleep in his own bed,” she said.

Hints of progress

Trump’s Middle East envoy, Steve Witkoff, and the president’s son-in-law, Jared Kushner, took part in the Wednesday talks in Egypt, which were also attended by Qatar’s prime minister, Sheikh Mohammed bin Abdulrahman Al Thani and Netanyahu’s top adviser, Ron Dermer.

Trump had expressed optimism earlier in the day by saying that he was considering a trip to the Middle East within a matter of days.

This would be the third ceasefire reached since the start of the war.

The first, in November 2023, saw more than 100 hostages, mainly women and children, freed in exchange for Palestinian prisoners before it broke down. In the second, in January and February of this year, Palestinian militants released 25 Israeli hostages and the bodies of eight more in exchange for nearly 2,000 Palestinian prisoners. Israel ended that ceasefire in March with a surprise bombardment.

Praying for a deal

A growing number of experts, including those commissioned by a U.N. body, have said that Israel’s offensive in Gaza amounts to genocide — an accusation Israel denies. More than 67,000 Palestinians have been killed in Gaza and nearly 170,000 wounded, according to Gaza’s Health Ministry.

The ministry, which doesn’t differentiate between civilians and combatants but says around half of the deaths were women and children, is part of the Hamas-run government. The United Nations and many independent experts consider its figures to be the most reliable estimate of wartime casualties.

In the Gaza Strip, where much of the territory lies in ruins, Palestinians have been desperate for a breakthrough. Thousands fleeing Israel’s latest ground offensive in northern Gaza and Gaza City have set up makeshift tents along the beach in the central part of the territory, sometimes using blankets for shelter.

Ayman Saber, a Palestinian from Khan Younis, reacted to the ceasefire announcement by saying he plans to return to his home city and try to rebuild his house, which was destroyed last year by an Israeli strike.

“I will rebuild the house, we will rebuild Gaza,” he said.

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Associated Press writers Eric Tucker in Washington, Sarah El Deeb in Beirut David Rising in Bangkok and Melanie Lidman in Tel Aviv contributed to this report. Magdy reported from Cairo and Madhani from Washington.