A ceasefire between Israel and Hamas held in Gaza for a third day on Sunday ahead of the expected release of Israeli hostages and Palestinian prisoners and an address by US President Donald Trump to Israel's parliament.

Thousands of Palestinians continued to travel north towards Gaza City, the focus of Israeli attacks over the past two months, hopeful the ceasefire would bring an end to the war.

"There is a lot of joy among the people," said Abdou Abu Seada, adding that the joy was tempered by exhaustion after two-years of war that have destroyed much of Gaza.

Israel's hostages coordinator Gal Hirsch, in a letter to relatives of the captives seen by Reuters, said it was expected that hostages would start being released on Monday.

Under the ceasefire agreement, Hamas is due by noon on M

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