Israel has freed a second group of Palestinian prisoners as part of the US-brokered deal setting up the current peace talks.
Jubilant crowds greeted the 26 men as they left the prison near Jerusalem.
Shortly after their release, Israeli Radio reported government plans for the construction of 1,500 new settler homes in East Jerusalem.
The release was part of an agreement brokered by US Secretary of State John Kerry that brought Israel and the Palestinians back to the table for peace talks that had been paralysed since 2008.
In all, 104 convicts are to be released in four batches over the coming months.