The agreement, which was brokered by Qatar, Egypt and the United States, is currently being finalized, Qatar's prime minister, Sheikh Mohammed bin Abdulrahman Al Thani, announced during remarks in Doha late Wednesday.
There were celebrations in Israel and Gaza following months of a brutal war that threatened the stability of the Middle East.
READ MORE: Israel and Hamas reach ceasefire and hostage release deal
The three-phase deal is set to begin on Sunday with a temporary ceasefire and play out for the next six weeks.
News of the ceasefire is bringing hope following months of grief.
"Finally," said Amichai Shdaimah from Ardmore, Pennsylvania.
Shdaimah breathed a sigh of relief after hearing about news of the deal.
"Any individual released is a miracle, especially released alive," said Shdaimah
Shdaimah understands the agony as he waited 53 days for his then-84-year-old stepmother, Ditza Heiman, to be released in November 2023.
But he continues to think about those who've been in captivity for more than 15 months.
"It's an emotional rollercoaster all the time. It's unbelievable," said Shdaimah. "We are all waiting. We hope they come home and be able to hug each other and get together."
President Joe Biden announced the three-phase deal would start with 33 out of nearly 100 hostages being released, including women, children and Americans. This would be in exchange for hundreds of Palestinian prisoners.
Israeli forces would also start to leave Gaza and send in more aid.
Philadelphia's American Jewish Committee said it's remaining "cautiously optimistic."
"This agreement will be a path forward," said Marcia Bronstein who is the American Jewish Committee regional director. "It will be the next step for the remaining hostages, and it will be the end of suffering for Israelis and Gazans."
The Jewish Federation of Greater Philadelphia said in a statement:
"While we are relieved that 33 hostages will finally return home after over 465 days of captivity, nearly 100 remain in Gaza, and their immediate release must be prioritized. Every single one of them must come home... We stand firmly with the people of Israel and the global Jewish community, committed to freeing every hostage and ensuring lasting safety, justice, and peace."
President Biden said under Phase 2, they'll release the rest of the living hostages, and Israeli forces will completely withdraw from Gaza.
In the final phase, both sides will exchange the remaining bodies, and a major reconstruction plan for Gaza will begin.
Philadelphia's Council on American-Islamic Relations said Palestinians desperately need the assistance after months-long destruction.
"The thousands of Philadelphia-area Palestinians are relieved while at the same time are a bit cautiously happy," said Ahmet Tekelioglu who is the executive director of CAIR Philadelphia."With these ceasefires, there's always the possibility of something going wrong."
U.S officials will join other international leaders in Egypt on Thursday to talk more about implementing the ceasefire.
Officials said the second and third phase negotiations will be finalized after the first phase.