Both sides agreed there would be no Hamas ceremonies for the hostage bodies and in exchange Israel would release the Palestinian detainees and prisoners whose freedom had been held up since Saturday.
Israel says it is stopping the delivery of aid to Gaza until Hamas accepts a U.S. proposal for an extension of the ceasefire deal.
Hamas says it is not willing to extend the first phase of the Gaza ceasefire, rejecting an Israeli request to delay negotiations on the second phase.
The bodies of four Israeli hostages are to be returned late Wednesday and more than 600 Palestinian prisoners and detainees freed during the last week of the current Gaza ceasefire deal.