Hamas' armed wing on Monday handed over an Israeli-American hostage held in Gaza since October 2023, ahead of a regional visit by US President Donald Trump.

"The (Ezzedine) Al-Qassam Brigades have just released the Zionist soldier and American citizen Edan Alexander, following contacts with the US administration, as part of the efforts undertaken by mediators to achieve a ceasefire," Hamas said in a statement.

Israel's military said Alexander was back inside Israel and "on his way to an initial reception point ... where he will be reunited with his family."

The military said he had spoken to his mother by phone.

Al Jazeera television showed a photograph of him standing next to masked fighters and a Red Cross official.

Unlike in previous hostage releases, he was wearing civilian clothes.

Israeli Prime Minister Benjamin Netanyahu hailed Alexander's return, crediting "political pressure" from Trump and "our military pressure" for the release.

Alexander's release comes a day after Hamas revealed it was engaged in direct talks with Washington towards a ceasefire. (Agencies)