Islamic Jihad and Hamas fighters struggled to hold back a crowd of hundreds in a chaotic handover of two Israeli and five Thai hostages in Khan Yunis in southern Gaza on Thursday.

Spectators surged forwards, some trying to take pictures, as 80-year-old Israeli-German Gadi Moses and 29-year-old Israeli woman Arbel Yehud, were transferred to Red Cross vehicles along with five Thai hostages. 

In images broadcast briefly before her family asked for them not to be shown, masked fighters wearing body armour and carrying automatic weapons were seen struggling to clear a path through the crowd for Yehud.

Wearing an overcoat over a pink hoodie, she was seen visibly distressed among the sea of people. She was later seen in a Red Cross vehicle along with Moses.

The Israeli prime minister's office named the five Thais released as Watchara Sriaoun, Pongsak Tanna, Sathian Suwannakham, Surasak Lamnau and Bannawat Saethao.

Prime Minister Benjamin Netanyahu slammed what he described as "shocking scenes" during the handover.

"This is yet another proof of the unimaginable cruelty of the Hamas terrorist organisation," Netanyahu said in a statement.

"Whoever dares to harm our hostages will pay the price."

Hundreds of Palestinians gathered in Khan Yunis in southern Gaza near the childhood home of slain Hamas leader Yahya Sinwar on Thursday in anticipation of the hostages being released.

Curious 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 Moses and Yehud.

"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.

"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 deployed to Khan Yunis for the exchange.

Certificate and gift bag

Earlier, Israeli woman soldier Agam Berger was freed amid the gutted buildings of Jabalia in northern Gaza in a more organised handover. 

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 Ezzedine 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.

Hamas put on a display of strength in the north of the Palestinian territory, which sustained huge damage during an Israeli operation which continued right up to the eve of the January 19 ceasefire.

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

On the concrete skeleton of one building, its top floors pancaked by strikes, a huge Palestinian flag had been draped down five floors.

                

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