Israel has approved a list of 500 Palestinian prisoners to be released in the coming days, under terms agreed at last week's Middle East summit in Egypt.
Israeli officials described the move as a goodwill gesture to the Palestinian leader Mahmoud Abbas, after both sides agreed to a ceasefire.
But Palestinians have said the list falls short of expectations, as most of the prisoners are nearing the completion of their sentences and are from Mr Abbas's Fatah movement.
Militants to maintain Mid East truce
Palestinian militant groups, Hamas and Islamic Jihad, have said they will maintain an undeclared truce while they consider joining a ceasefire with Israel.
The announcement was made following a visit to Gaza yesterday by Mahmoud Abbas, who met leaders of both groups.
Senior Hamas leader, Mahmoud al-Zahar, said his organisation would make a final decision after reflecting on the talks with Mr Abbas.
Mr Zahar said the group wanted to be sure that Israel had stopped military operations and targeted assassinations.
The Palestinian leader had sought Hamas's agreement to a full ceasefire with Israel which he announced at a summit last Tuesday with the Israeli Prime Minister, Ariel Sharon, in Egypt.
Islamic Jihad also confirmed it would respect the undeclared peace.
