Israel said Palestinians could begin returning to the north of the war-battered Gaza Strip on Monday after a deal was reached with Hamas for the release of another six hostages, according to Prime Minister Benjamin Netanyahu's office.

An agreement has been reached between Israel and Hamas that involves the release of additional hostages and the return of Palestinians to the northern part of the Gaza Strip.

Some troops had been expected to withdraw to allow hundreds of thousands of displaced Gazans to go home. But Israel said the hostage exchange before that step had not gone as agreed. Hamas accused Israel of stalling.