The three captives; Or Levy, Eliyahu Sharabi, and Ohad Ben Ami, were handed over by Hamas fighters to Red Cross representatives in the central city of Deir al-Balah.
One of the freed captives appeared in an Israeli army military uniform while the two others dressed in brown clothes, according to an Anadolu reporter.
The Red Cross representatives signed documents to receive the captives and took them in vehicles to hand them over to the Israeli army.
The Israeli army confirmed that it has been notified by the Red Cross that the three hostages were handed over to them by Hamas.
The Israeli army is set to free 183 Palestinian prisoners in swap for the three captives.