Hamas says the fourth body is that of Oded Lifshitz, 84, a veteran peace activist. It will mark the first time the group will have handed over dead hostages since the ceasefire began last month. Israeli PM Benjamin Netanyahu said "the heart of the entire nation is torn", adding that Israel was dealing with "monsters".

Hamas said it would turn over the bodies of the boys, Ariel Bibas and his baby brother, Kfir, and their mother. Israel was expected to release Palestinian prisoners in exchange.

Sky News host Andrew Bolt has slammed Hamas as “disgusting” for returning dead hostages in exchange for live Palestinian prisoners.

Hamas is set to release the bodies of four hostages -- including the Bibas family -- on Thursday as the first phase of its ceasefire agreement with Israel continues.

The Palestinian group claims that Shiri and her children Kfir and Ariel were killed in Israeli bombardment. Israel has not confirmed this.

Hamas on Tuesday said that it will release the dead bodies of four Israeli hostages on Thursday, including the two youngest people held by the group, Kfir and Ariel Bibas.