Hamas identified the seven released as Matan Angrest, Gali Berman, Ziv Berman, Alon Ohel, Eitan Mor, Omri Miran and Guy Gilboa-Dalal, according to Israeli media reports.
All were abducted during the Oct. 7, 2023 attack on Israel and spent 738 days in captivity.
About 65,000 people gathered at Hostages Square in Tel Aviv to celebrate the news.
The White House press office said US President Donald Trump watched the initial releases aboard Air Force One shortly before the aircraft landed in Israel.
The 20 hostages due to be freed on Monday are the last living captives from among 251 people seized on Oct. 7, 2023.
Their release is part of the first phase of a ceasefire in the Gaza Strip that has been in effect since Friday.
Qatari broadcaster Al Jazeera reported that another 13 hostages would be freed at 10 a.m. Israeli time in southern Gaza, and Hamas is also to hand over the bodies of 28 captives who were killed.
In return, Israel will release 250 Palestinians sentenced to life imprisonment and more than 1,700 Gaza residents detained after the war began two years ago.
Hamas militants killed nearly 1,200 people and abducted 251 in the Oct. 7, 2023 assault.
Since then, 138 hostages have been freed, mainly through truce-linked swaps in late 2023 and early 2025; eight were rescued by Israeli forces; and the bodies of 58 abductees were recovered.
Hamas previously released two Israelis kidnapped before Oct. 7 and handed over the body of a soldier abducted earlier.
Before the current ceasefire took effect, Hamas held 47 people captured on Oct. 7. Of those, 20 were still alive, and Hamas also held the body of an Israeli soldier killed in 2014.
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Source: PAP