GAZA/JERUSALEM -- Israel and Hamas have reached an agreement on the exchange of the bodies of dead hostages for the release of more than 600 Palestinian prisoners, Palestinian and Israeli sources said Wednesday.

Hamas spokesman Abdul Latif Al-Qanou said Wednesday in a statement that the exchange will take place through a new mechanism that guarantees Israel's commitment to implementing the ongoing ceasefire deal, with its date to be announced at an appropriate time.

"The movement has not been presented with any proposal regarding the second phase of the truce deal, despite our readiness for it and our keenness to move forward with it to complete all stages of the agreement," the spokesman noted.

Meanwhile, a Hamas source told Xinhua the movement is preparing to hand over the bodies of four Israeli hostages to Egypt via the International Committee of the Red Cross (ICRC) on Thursday.

The ICRC will transfer the bodies from Gaza to the Kerem Shalom crossing and then to Egypt without any official ceremonies, while Israel will gradually release more than 600 Palestinian prisoners, the source said.

The transfer route is designed to avoid any Israeli attempts to disrupt the implementation of the deal, the source added.

Also on Wednesday, an Israeli official confirmed to Xinhua on condition of anonymity that Hamas will return the bodies of four Israeli hostages as part of an agreement brokered by mediators.

Israel's state-owned Kan TV News reported that the exchange of hostages' bodies for the release of Palestinian prisoners is expected to take place on Thursday.

These more than 600 Palestinian prisoners were initially scheduled to be released on Feb 22 under the first phase of the ceasefire deal, after Hamas freed six hostages earlier in the day. However, Israeli Prime Minister Benjamin Netanyahu announced later that Israel would withhold their release "until the release of the next hostages is secured, without any disgraceful ceremonies."

On Tuesday evening, Hamas said in a statement that after its senior delegation concluded talks with Egyptian officials in Cairo, the movement worked out a solution to Israel's delay in the release of Palestinian prisoners.