New Delhi, Jan 16 (IANS) Over a year after the Gaza war broke out and went on to cause chaos and devastation while rattling the Middle East, a landmark agreement was reached between Israel and Hamas, with both sides reportedly agreeing to cease hostilities and exchange Israeli hostages for prisoners from Palestine.

US President Joe Biden confirmed the crucial development on Wednesday at a briefing, saying "it is a very good afternoon now". He said: "Soon, the hostages will return home to their families."

The peace deal involves a full and complete ceasefire along with the withdrawal of Israeli forces from Gaza and the release of all the hostages held by Hamas, the BBC reported.

Biden said that Israel would release Palestinian prisoners in return.

The US President said that during the first phase of the ceasefire deal, "Palestinians can return home to their neighbourhoods and humanitarian assistance in the Gaza Strip will increase".

Biden also said that Israel and Hamas will negotiate the necessary arrangements in phase two for what would be the permanent end to the war.

"If negotiations take longer than six weeks, the ceasefire will continue," the US President, who was accompanied by Vice President Kamala Harris and Secretary of State Antony Blinken during the briefing, added.

The US President, adding to what brought about the deal, said that "after 15 months of war, Hamas' senior leaders are dead, thousands of its fighters are also dead, and now it's operationally weakened, it had agreed to this deal", the BBC reported.

Biden said that he is "deeply satisfied" this day has come, both for the sake of people in Israel with loved ones still being held captive, and those in Gaza who've suffered "unimaginable devastation".

The US President mentioned that "too many innocent people have died".

"With this deal the Palestinians can rebuild, without Hamas," he said.

Biden further added he and the team of President-elect Donald Trump worked as "one team" in their attempts to get the ceasefire deal over the line.

Gaza war: Israel and Hamas reach ceasefire, hostage release deal