US President Joe Biden on Saturday welcomed the freeing in an Israeli operation of four hostages held by Palestinian militants in Gaza, vowing to work until all the captives were released and a ceasefire in place.

"We won't stop working until all the hostages are home and a ceasefire is reached. That's essential to happen," Biden said in Paris alongside French President Emmanuel Macron, who also congratulated the families for the release of the hostages.

"We rejoice at the release of the four Israeli hostages freed by the Israeli army today," said Macron.

Earlier Saturday, Israel said its forces rescued four hostages alive from a Gaza refugee camp.

The four had been kidnapped by Hamas from the Nova music festival during the Islamists' October 7 attacks that sparked war with Israel, the army said.

Noa Argamani, 26, Almog Meir Jan, 22, Andrey Kozlov, 27, and Shlomi Ziv, 41, had been rescued from two separate buildings "in the heart of Nuseirat" in a "complex daytime operation", the military said, adding they were in "good medical condition".

US National Security Advisor Jake Sullivan praised "the work of the Israeli security services that conducted this daring operation".

In a statement Saturday morning, Sullivan pressed for an agreement to free the hostages and end the war.

"The hostage release and ceasefire deal that is now on the table would secure the release of all the remaining hostages together with security assurances for Israel and relief for the innocent civilians in Gaza," he said, adding that the agreement has the backing of many countries.

US Secretary of State Antony Blinken will head to the Middle East next week to promote the deal.

"We want to achieve an immediate ceasefire and open up the prospect of a political solution," Macron said in Paris alongside Biden.