Hamas fighters are will release three Israeli hostages on Saturday in exchange for 369 Palestinians in Israeli custody, the sixth swap of a truce that came close to collapse this week.

Israel and Hamas have traded accusations of violating the January 19 ceasefire, with the Palestinian group saying it would pause releases and Israel threatening the resumption of war in the Gaza Strip.

But on Friday both sides signalled that the hostage release scheduled for Saturday would go ahead.

The Palestinian Prisoners' Club advocacy group said that Israel was to release 369 inmates in exchange, with 24 of them expected to be deported.

The vast majority, 333 people, are "prisoners from the Gaza Strip who were arrested after October 7", the group said.

After the crisis that appeared to bring the fragile truce to a breaking point, Hamas said on Friday it expected talks on a second phase of the ceasefire to begin early next week.

US Secretary of State Marco Rubio, whose country is Israel's top backer and has been involved in mediation efforts during the war, is due to arrive in Israel late Saturday.

Last week's release sparked anger in Israel and beyond, with the emaciated state of the freed Israeli hostages sparking concern over conditions in captivity.

There were also fears for Palestinians in Israeli custody after some prisoners required medical treatment on their release.

The ceasefire has been under massive strain since US President Donald Trump proposed a takeover of the Gaza Strip under which the territory's population of more than two million would be moved to Egypt or Jordan.

For Palestinians, any forced displacement evokes memories of the "Nakba", or catastrophe -- the mass displacement of their ancestors during Israel's creation in 1948.

Arab countries have come together to reject the plan, and Saudi Arabia will host the leaders of Egypt, Jordan, Qatar and the United Arab Emirates on Thursday for a summit on the issue. (AFP)