, ahead of a visit by US President Donald Trump to the region, and as the group revealed it was engaged in direct talks with Washington towards a ceasefire.
On Monday Hamas's armed wing, the Ezzedine al-Qassam Brigades, said it had "decided to release the Zionist soldier holding American citizenship, Edan Alexander, today", spokesman Abu Obeida said on Telegram.
Netanyahu had earlier said that "Israel has not committed to a ceasefire of any kind or the release of terrorists but only to a safe corridor that will allow for the release of Edan".
Negotiations for a possible deal to secure the release of all hostages would continue "under fire, during preparations for an intensification of the fighting", Netanyahu added.
An Israeli official said the military was "preparing" for the return of Alexander, "who will be transferred by a special unit to the initial reception facility in Re'im" near the Gaza border in southern Israel.- 'Opportunity to breathe' -Hamas had said Alexander, the last living hostage in Gaza with American citizenship, would be released "as part of efforts towards a ceasefire" and the reopening of aid crossings.
A source close to the militant group told AFP on Monday that Hamas had decided not to hold a public ceremony for the handover.
A Hamas source meanwhile said that mediators informed the group that Israel would pause military operations for the handover of the 21-year-old soldier.
"Hamas was informed that at exactly 9:30 am, Israel began halting its reconnaissance, drone, and warplane flights, as well as combat operations, to create a safe corridor for the transfer and handover of Edan," the source said.
The pause offered a much-needed respite for residents of the war-battered territory.
Somaya Abu Al-Kas, 34, who had been displaced to the southern city of Khan Yunis, said that "a little while ago, calm settled over Gaza, there was no shelling, and no nearby aircraft, which is very rare".
"We are tired of the shelling, and any ceasefire, even if temporary, we consider it an opportunity to breathe and gather ourselves," said the 34-year-old
But Um Mohammed Zomlot, also displaced in Khan Yunis, said that "despite the calm, we are cautious".
"Everyone is afraid that the shelling might resume suddenly after the prisoner is released," said Zomlot, 50.
Gaza's civil defence agency had earlier reported at least 10 killed in an overnight Israeli strike on a school housing displaced people.
- 'Good faith gesture' -
The Hostages and Missing Families Forum, the largest grouping of hostages' relatives in Israel, called for a gathering at the plaza dubbed Hostages Square in Tel Aviv, ahead of Alexander's anticipated release.
"We must not leave anyone behind!" the group said in a statement.
Trump, who is due in Saudi Arabia on Tuesday, hailed the "monumental news" of Alexander's release in a post on social media, describing it as a "good faith gesture".
"Hopefully this is the first of those final steps necessary to end this brutal conflict," he added.
Egypt and Qatar, who along with the US have mediated talks between Hamas and Israel, also welcomed the development, describing it in a joint statement as a "a gesture of goodwill and an encouraging step toward a return to the negotiating table".
Earlier, two Hamas officials told AFP that talks were ongoing in Doha with the United States and reported "progress".
Of the 251 hostages seized during Hamas's October 7, 2023 attack on Israel, 58 are still held in Gaza, including 34 the Israeli military says are dead.
Israel ended a two-month ceasefire on March 18, ramping up its bombardment of the territory.
Earlier this month, the Israeli government approved plans to expand its Gaza offensive, with officials talking of retaining a long-term presence there.
Hamas's 2023 attack on southern Israel resulted in the deaths of 1,218 people, mostly civilians, according to an AFP tally based on official figures.
The health ministry in Hamas-run Gaza said on Monday that at least 2,749 people have been killed since Israel resumed its campaign, bringing the overall death toll since the war broke out to 52,862.
