The International Committee of Red Cross has confirmed the release of two female civilian captives in response to Egyptian-Qatari mediation efforts.
Israeli media has named the women who have been released as as Nurit Cooper and Yocheved Lifshitz.A spokesman for armed wing of the militant group, said on Telegram that it had "decided to release them for humanitarian and poor health grounds."
It comes after it released two Americans on Friday, nearly two weeks after Hamas gunmen abducted them and others near Gaza in an October 7 cross-border assault, killing 1,400 people and taking more than 200 hostages.
Earlier the Prime Minister has said the deadly hospital blast in Gaza last Tuesday was "launched from within" as he pledged a further £20 million in aid to Palestinians.
Rishi Sunak told the House of Commons on Monday that British intelligence suggested the Al-Ahli hospital blast on October 17 was “likely caused by a missile, or part of one, that was launched from within Gaza towards Israel”.
At least 500 people died when Al-Ahli Arab hospital was hit, with Hamas and Israeli forces blaming each other for the strike.
Mr Sunak told the Commons: "We have taken care to look at all the evidence currently available."
He added that "misreporting" about who had caused the explosion "had a negative effect on the region", including impacting a key diplomatic visit by US President Joe Biden.
Palestinian officials say 436 people - including 182 children - have been killed in Gaza in the last 24 hours, while the total death toll has climbed above 5,000.
A third small aid convoy of 20 trucks entered Gaza from Egypt on Monday, the United Nations said.