"We have a deal for hostages in the Middle East. They will be released shortly," Trump said on Truth Social.
Israeli Prime Minister Benjamin Netanyahu's office in turn said that a number of outstanding issues remain in the agreement on the Gaza Strip and hostage release that could be resolved tonight.
"Several outstanding issues in the agreement remain, and we hope that the details will be agreed upon this night," the statement said.
The office added that thanks to Netanyahu's "firm stance," Palestinian movement Hamas backed down at the last moment from its demand to change the deployment of Israeli forces on the Gaza-Egypt border.
Earlier in the day, the Al Jazeera broadcaster reported that a delegation from Palestinian movement Hamas has conveyed to mediators its consent to conclude an agreement on a ceasefire in the Gaza Strip and an exchange of hostages.
Israeli state broadcaster Kan in turn reported that Israeli cabinet will meet on Thursday to approve the agreement. Kan's source also confirmed reaching an agreement after a round of talks in Qatar.