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Israel’s withdrawal comes in the wake of a fragile ceasefire brokered with Hamas in recent months.
Thousands of Palestinians headed north on Monday after waiting for days to cross into their homeland.
Associated Press reporters said people were seen crossing the Netzarim corridor shortly after 7am.
The opening was delayed over a dispute between Hamas and Israel, which said the militant group had changed the order of the hostages it released in exchange for hundreds of Palestinian prisoners.
Mediator Qatar announced an agreement had been reached to release an Israeli civilian hostage and allow Palestinians to return to northern Gaza overnight, easing the first major crisis of the fragile ceasefire between Israel and Hamas.
Displaced residents wait to return to north Gaza Strip after Israel pledged to end its besiegement of the Palestinian region (Jehad Alshrafi/AP)
Qatar’s statement said Hamas will hand over the civilian hostage, Arbel Yehoud, along with two other hostages before Friday. And on Monday, Israeli authorities will allow Palestinians to return to northern Gaza.
The office of Israeli Prime Minister Benjamin Netanyahu in a statement said the hostage release — which will also include soldier Agam Berger — will take place on Thursday, and confirmed that Palestinians can move north on Monday.
Under the ceasefire deal, Israel on Saturday was to begin allowing Palestinians to return to their homes in northern Gaza. But Israel put that on hold because of Ms Yehoud, who Israel said should have been released on Saturday. Hamas accused Israel of violating the agreement.
The release of Ms Yehoud and two other hostages is in addition to the one already set for next Saturday when three hostages should be released.
In addition, Hamas in a statement said the militant group had handed over a list of required information about all hostages to be released in the ceasefire’s six-week first phase.
The Israeli prime minister’s office confirmed it had received the list.
Thousands of Palestinians have gathered, waiting to move north through the Netzarim corridor bisecting the territory, while local health officials on Sunday said Israeli forces fired on the crowd, killing two people and wounding nine.
A Palestinian boy carries his belongings as he walks with his family next to the rubble of destroyed homes in Gaza City (Abed Hajjar/AP)
US President Donald Trump meanwhile suggested that most of Gaza’s population be at least temporarily resettled elsewhere, including in Egypt and Jordan, to “just clean out” the war-ravaged enclave. Egypt, Jordan and the Palestinians rejected that, amid fears that Israel might never allow refugees to return.
Senior Hamas official Bassem Naim said Palestinians would never accept such a proposal, “even if seemingly well-intentioned under the guise of reconstruction.”
He said the Palestinians can rebuild Gaza “even better than before” if Israel lifts its blockade.
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