Hundreds gather in Khan Yunis for Israeli hostages release

Onlookers clambered over smashed concrete on the upper floors of buildings, devastated in more than 15 months of war with Israel in Gaza, hoping to catch a glimpse of Gadi Moses, an 80-year-old Israeli-German, and Arbel Yehud, a 29-year-old Israeli woman.

On the ground, along what was left of a narrow, dusty road, crowds scores deep gathered for the exchange near the home of Sinwar, who was killed on October 16 last year.

"We came to witness these historic moments of handing over the prisoners. We feel proud of the resistance -- they preserved the lives of the prisoners throughout the days of the occupation's war of extermination," Mohammed Al-Astal, 32, told AFP from Khan Yunis.

"The resistance's choice of the home of the martyred leader Yahya Sinwar for the handover encouraged thousands of citizens to participate and celebrate the ceremony. Everyone is eager for moments of joy," he added.

Hamas and Islamic Jihad sources said that more than 100 Islamic Jihad fighters were to be stationed in Khan Yunis for the exchange.

Earlier, Israeli woman soldier hostage Agam Berger was freed amid the twisted metal and gutted buildings of Jabalia in northern Gaza.

Wearing green, military-style fatigues, Berger was handed over to the International Committee of the Red Cross after being led briefly on to a makeshift stage flanked by Hamas fighters, only their eyes visible through masks.

The 20-year-old Israeli, who was handed a gift bag and a golden-framed certificate to mark the end of her ordeal, kept a steady gaze on the platform which broke only when she was urged by a Hamas cameraman to wave to the crowd.

She complied without enthusiasm.

In Tel Aviv, crowds shouted with joy as Berger's release was broadcast.

At Bellinson hospital in central Israel, former hostages Liri Albag, Naama Levy, Daniella Gilboa and Karina Ariev who were released last week celebrated their friend's release.

Dozens of fighters from Hamas's Al-Qassam Brigades brandishing assault rifles and conspicuous in their bright-green headbands climbed into pickups as they escorted the Red Cross vehicles out of Jabalia refugee camp in convoy.

Hamas on Thursday put on a display of strength in the north of the Palestinian territory, which bore the brunt of Israel's assault towards the end of last year and where thousands of Gazans, displaced by the war, have returned under a ceasefire deal which began on January 19.

Fighters stood guard on mounds of sand, piled high by Israeli bulldozers, and surrounded by gutted buildings.

Festive bunting in the colours of the Palestinian flag was also strung between dilapidated buildings in the area for the handover.