Friends and family members of the freed hostages have been celebrating outside the Sheba Hospital in the city of Ramat Gan, where the hostages are being treated.
Video footage shows a large crowd chanting slogans, such as: 'Hear Israel don't be afraid' and, 'The nation of Israel lives.'
After being rescued by an Israeli military operation from two locations in Nuiseirat, central Gaza, the four hostages were flown by helicopter to the Sheba Hospital, which is located about six miles outside Tel Aviv.
Jubilant scenes of celebration were also seen on the beaches of Tel Aviv, where a lifeguard announced the news to the sunbathers below via loudspeaker. In a video shared by the Tel Aviv municipality, crowds can be heard clapping and screaming enthusiastically.
Israelis living in Athens also gathered to celebrate on Saturday, Israel's foreign ministry said, sharing a video on social media.
Meanwhile, in central Gaza, Palestinians have described scenes of total destruction in several communities where the hostage rescue operation took place. Heavy Israeli bombardment killed more than 200 Palestinians and wounded hundreds more, according to the Gaza government media office.