Israel is expected to release about 1,000 Palestinian prisoners in exchange for hostages in a three-stage ceasefire. The first stage involves the exchange of 34 hostages for Palestinian prisoners, with Israeli troops pulling out of populated areas in Gaza. The second stage includes the release of remaining hostages and allowing displaced people to return to the north of Gaza. The final stage focuses on the reconstruction of Gaza, with Israeli forces remaining in a buffer zone inside Gaza during the ceasefire.