Red Cross in Gaza City, Israel said on Thursday, and more hostages were expected to be released, following a last-minute deal struck by Israel and Hamas.
Israel named the women as 21-year-old Mia Schem, who was seized at a dance party along with many of the other hostages abducted into Gaza, and 40-year-old Amit Sosana. Schem also holds French nationality.
The warring sides agreed to extend their ceasefire for a seventh day, while mediators pressed on with talks to extend the truce further to free more hostages and let aid reach Gaza.
The truce has halted bombing and allowed some humanitarian aid into Gaza.
Also on Thursday, the armed wing of Hamas claimed responsibility for a deadly shooting in Jerusalem which killed three people.
Israel called the act further proof of the need to destroy the militants, although there were no signs of this scuppering the Gaza truce or release of hostages.
Earlier, Israel, which has demanded Hamas release at least 10 hostages per day to hold the ceasefire, said it received a list at the last minute of those who would go free on Thursday, allowing it to call off plans to resume fighting at dawn.
«In light of the mediators' efforts to continue the process of releasing the hostages and subject to the terms of the framework, the operational pause will continue,» the Israeli military said in a statement. Hamas also said the truce would continue for a seventh day.
US Secretary of State Antony Blinken, in Israel during his third visit to the Middle East since the war began, said the truce was «producing results.
It's important, and we hope it can continue».
«We have seen over the last week the very positive development of hostages coming home, being reunited with their families. And