There's confidence Israeli hostages will be released as early as this weekend, with Hamas and Israel today agreeing to the first phase of a peace plan.

It includes Hamas releasing hostages and Israel withdrawing some forces from Gaza. 

Foreign Minister Winston Peters has welcomed the news - and urges Israel and Hamas to continue working towards a complete resolution.

Australian National University lecturer Anas Iqtait says this first phase could be carried out in the next 72 hours.

"It is highly likely that Israeli captives in Gaza and Palestinian prisoners held in Israeli detention camps and prisons will also be released."

LISTEN ABOVE

• Australian Government welcomes Trump's new Gaza peace deal
• Barry Soper: Winston Peters defends stance on Palestine amid ongoing backlash
• What we know about the new Gaza deal
• 'Blessed are the peacemakers': Trump announces peace plan for Gaza