"Israeli forces have dismantled their positions and military posts and completely withdrawn their tanks from the Netzarim Corridor on Salaheddin Road, allowing vehicles to pass freely in both directions," the official from the Hamas-run interior ministry said.

An AFP journalist at the scene said that no Israeli forces were present on Sunday.

The full withdrawal of troops from the corridor took place a day after Hamas and Israel conducted their fifth hostage-prisoner swap, in which militants released three Israeli captives in exchange for 183 Palestinian prisoners held in Israeli jails.

Late Saturday, a senior Hamas official told AFP that, according to the ceasefire deal, Israeli forces had to withdraw from Salaheddin Road after the fifth swap was carried out.

"Mediators informed Hamas on Friday evening that Israeli forces would begin withdrawing from Salaheddin road on Sunday morning, dismantling the military checkpoint and surrounding positions," the official said, adding this would allow "free movement for civilians and vehicles".

AFP is unable to independently verify the details of the ceasefire agreement as its text has not been made public.

Asked about Sunday's withdrawal, An Israeli security official, who requested anonymity, told AFP: "We are preparing to implement the ceasefire agreement according to the guidelines of the political echelon."

AFP journalists reported cars, buses, pickup trucks and even donkey carts were seen travelling on Salaheddin Road from both the north and south.

In a significant development in the ceasefire deal, Israel reopened the highway late last month, but only to northbound traffic, permitting displaced Gazans to cross the Netzarim Corridor to return to their homes in the territory's north.

With the army's withdrawal, those in the north can now also cross the corridor heading south.

Since the war in Gaza began in October 2023, the Israeli military had effectively cut off the northern part of the territory from the south by heavily fortifying the corridor.