A breakthrough ceasefire agreement between Israel and Palestinian resistance group Hamas is set to be signed at 0900 GMT, marking the first stage of US President Donald Trump's peace plan for Gaza.

According to sources familiar with the deal, the truce will go into effect immediately after signing, offering a potential turning point in one of the bloodiest conflicts in the region's history and offering respite to Palestinians who have endured two years of Israeli bombings.

Mediated by Qatar, Egypt, Türkiye and the US — who have also signed on as guarantors — the agreement is the first structured attempt to halt Tel Aviv's war that has killed more than 67,000 Palestinians and left Gaza devastated.

Both Israel and Hamas have confirmed their commitment to the initial phase, which centres on three pillars: a prisoner exchange, Israeli troop withdrawal to designated lines and the entry of critical humanitarian aid into Gaza after years of blockade.

Hamas sources said the first exchange will see 20 Israeli captives freed in return for nearly 2,000 Palestinian prisoners.

This includes 250 Palestinians serving life sentences and 1,700 others, many of them women and children, detained since the onset of the war. The swap is expected to occur within 72 hours of the deal's implementation.

Israeli security cabinet meets later in the day to discuss the deal.

This is a developing story.