Israel and Hamas have reached an agreement to exchange the bodies of four hostages for the release of hundreds of Palestinian prisoners, an Israeli source told CNN, indicating the fragile Gaza ceasefire remains intact for now.

Hamas is set to free six more Israeli hostages from the Gaza Strip. The release scheduled for Saturday would also involve freeing hundreds of Palestinian prisoners.

Hamas says talks with Israel about further steps in the Gaza ceasefire deal are conditional on Palestinian prisoners being freed as agreed. Israel said on Sunday it was delaying the release of more than 600 Palestinians in return for six living and four dead hostages who had been freed,