Israeli Prime Minister Benjamin Netanyahu said early on Sunday that freeing Palestinian prisoners under the Gaza ceasefire deal will be delayed until Hamas ends "humiliating ceremonies" it holds while handing over Israeli hostages.

"In light of Hamas' repeated violations - including the disgraceful ceremonies that dishonour our hostages and the cynical use of hostages for propaganda - it has been decided to delay the release of terrorists that was planned for yesterday (Saturday) until the release of the next hostages is ensured, without the humiliating ceremonies", Netanyahu's office said in a statement.

Since a ceasefire came into effect in Gaza on January 19, Hamas has released 25 Israeli hostages in well-rehearsed ceremonies, with masked militants parading the captives on stage and forcing them to wave at Gazans gathered to watch the events, and even address them on a microphone.

In the choreographed ceremonies, the hostages are given certificates in Hebrew to mark the end of their captivity before being handed over to Red Cross officials, who then transfer them to Israeli forces.

On Thursday, militants even handed over the remains of three hostages in coffins at a ceremony, which drew widespread criticism from the United Nations.

"The parading of bodies in the manner seen this morning is abhorrent and cruel, and flies in the face of international law," said UN human rights chief Volker Turk.

Hamas has dismissed repeated calls by the Red Cross to release the hostages in private.

On Saturday, Hamas released six Israeli hostages as part of the scheduled seventh such hostage-prisoner swap under the fragile first phase of the ceasefire deal.

In return, Israel was to release more than 600 Palestinian prisoners.

But soon after the hostages were released, Israeli sources said that Netanyahu was expected to decide on the Palestinian prisoners' releases.

Early on Sunday, Netanyahu announced his decision to suspend the release of Palestinian prisoners until the ceremonies for handing over hostages are halted. (AFP)