Exchange takes place after ceasefire was plunged into crisis when Hamas accused Israel of blocking aid convoys

Prison authorities in Israel announced early on Sunday that they had released 39 Palestinian prisoners after Hamas freed 13 Israelis and four Thai nationals in the latest stage of a four-day ceasefire.

Television footage showed hostages on the Egyptian side of the Rafah border crossing after leaving Gaza, as Hamas handed over the captives to the International Committee of the Red Cross late on Saturday.

Agreement could involve limited ceasefire in Gaza Strip and release of Palestinian prisoners from Israeli jails

• Israel-Hamas war – live updates

Israel and Hamas appear to be edging towards a deal that would see the release of a significant number of hostages, possibly in return for a limited ceasefire and the release of Palestinian prisoners from Israeli jails.

Senior US and Israeli officials, as well as the Qatari prime minister, all suggested an agreement was close on Sunday, although observers have cautioned that public statements during such negotiations are often misleading and any potential deal could easily collapse.

Doha positions itself as region’s lead mediator but balancing relations with Hamas and the west has become diplomatically precarious

A two-sentence tweet by Israel’s national security adviser has revealed the acute dilemma Israel and the west face in dealing with Qatar, the energy-rich state that has positioned itself as a mediator of conflicts around the world, from Khartoum to Kabul.

“I’m pleased to say that Qatar is becoming an essential party and stakeholder in the facilitation of humanitarian solutions,” Tzachi Hanegbi wrote. “Qatar’s diplomatic efforts are crucial at this time.”