The first seven living hostages who were released by Hamas to the International Committee of the Red Cross in Gaza are now in the hands of Israeli forces, the military said.
In the coming hours, Hamas is expected to free a total of 20 surviving hostages as part of a swap for about 2,000 Palestinians held in Israeli prisons.
Their release is to be followed by the handover of the bodies of 28 deceased hostages. Officials have warned, however, that the transfer of remains could take time amid fears that some bodies may be missing in the largely devastated Gaza Strip.
The exchanges between Israel and Hamas are the first phase of a ceasefire agreed by the sides in Egypt last week after two years of war.