JERUSALEM - Israel said on Monday that the country will allow Palestinians to return to northern Gaza, following a new hostage release deal with Hamas.

The Israeli prime minister's office confirmed in a statement that three Israeli civilian hostages will be released in an unscheduled handover on Thursday, and that Palestinians, displaced over the 15-month-old conflict, will be allowed to return to their homes in northern Gaza starting Monday morning.

Under a ceasefire agreement that took effect on Jan 19, Israel should have begun allowing Palestinians to return to northern Gaza on Jan 25. But Israel put that on hold because the release of Arbel Yehud, a female civilian hostage, was somehow delayed. Yehud was set to be released on Saturday in the second hostage swap.

Israel said on Saturday that it would not allow Palestinians to return to northern Gaza until Yehud's release was arranged.

Yehud, formerly scheduled to be released on Feb 1 as part of the third swap, is now on the list for Thursday's release, along with female observer soldier Agam Berger and another unnamed abductee.

The release of Yehud and two other hostages is in addition to the swap already set for the coming Saturday, when three hostages should be released.

Seven Israeli women have already been freed by Hamas as part of the ceasefire agreement.

Israel also received from Hamas a list detailing the status of the 26 hostages set to be released by the end of the six-week phase one of the agreement.