The Israeli military said on Monday that the remains of the last hostage held in Gaza, Ran Gvili, had been identified and repatriated to Israel for burial.

"Following the completion of the identification process by the National Institute of Forensic Medicine, in cooperation with the Israel Police and the Military Rabbinate, (Israeli military) representatives informed the family of the deceased hostage Sergeant First Class Ran Gvili, that their loved one has been identified and will be returned for burial," an army statement said.

"With this, all hostages have been returned from the Gaza Strip to the State of Israel," it added.

A non-commissioned officer in the Israeli police's elite Yassam unit, Gvili was killed in action during Hamas's attack on Israel on October 7, 2023 and his body taken to Gaza.

He was 24 at the time of his death.

Officials had said on Sunday that Israeli forces were searching for his remains in a cemetery in the northern Gaza Strip.

Of the 251 people abducted during the assault on Israel, which sparked the devastating war in Gaza, Gvili's was the last body remaining in the Palestinian territory.

The gradual return of the hostages over several stages has been a complicated and arduous process for both sides.

"This is an extraordinary achievement for the State of Israel," Prime Minister Benjamin Netanyahu told journalists in parliament.

"We promised – and I promised – to bring everyone back. We brought them all back, down to the very last captive," he added.

The first phase of the US-backed ceasefire deal which came into effect in October had stipulated that Palestinian Islamist movement Hamas hand over all the remaining hostages, living and dead.

Hamas spokesman Hazem Qassem said in a statement that: "The discovery of the body of the last Israeli prisoner in Gaza confirms Hamas's commitment to all the requirements of the ceasefire agreement on the Gaza Strip, including the prisoner exchange process and its complete closure as stipulated in the agreement."

In a statement, the Israeli group representing the families of hostages held in Gaza described Gvili as "a true friend, loved by everyone."

"He loved life, was a young man of deep values, always spoke at eye level, and carried a powerful yet calm presence," the Hostages and Missing Families Forum added. (AFP)