Israeli Prime Minister Benjamin Netanyahu has offered a “welcome home” to the first hostage rescued by the military in Gaza as he vowed to continue ground action to save the remaining captives.

Female Israeli soldier Private Ori Megidish was freed during overnight ground operations and was “doing well”, according to the Israeli military.

However, a young Israeli-German hostage, Shani Louk, who was kidnapped from a music festival and paraded around Gaza, has been confirmed dead via DNA samples from a skull.

“I am really sorry to report that we have now received news that Shani Nicole Louk has been confirmed murdered and dead,” Israeli President Isaac Herzog told Germany’s Bild newspaper.

On Tuesday morning (AEDT), Hamas also released a video on its social media of three Israeli hostages, which Netanyahu condemned as “cruel psychological propaganda”.

The video shows three woman – identified by Netanyahu as Yelena Trupanob, Danielle Aloni and Rimon Kirsht – sitting side by side against a bare wall, with Aloni addressing an angry message to the Israeli Prime Minister.

Accusing Netanyahu of failing to protect Israeli citizens during the deadly Hamas attack and failing to get them back home, she called for an agreement to secure their release in exchange for Palestinian prisoners.

“You were supposed to free all of us. You committed to free us all. But instead we are carrying your political, security, military, diplomatic failure,” she said.

Israeli hostages Rimon Buchshtab Kirsht,36, Danielle Aloni, 44 and Lena Trupanov, 50, in the video released by Hamas. Photo: Getty

Netanyahu on Tuesday (AEDT) said Israel was committed to getting all the hostages back home and “we think that this method (military action in Gaza) stands a chance”.

He ruled out a ceasefire, which he said would be surrendering to Hamas, terrorism and barbarism.

“That will not happen,” he said. “The Bible says that there is a time for peace and a time for war. This is a time for war.”

Families of the three hostages expressed their anguish after seeing the video.

Avital Kirsht Buchshtov, the mother of Rimon Kirsht, said she did “not wish upon any mother what we are suffering over the last 24 days”.

The short video is the second hostage message to be issued by Hamas, following an earlier clip of 21 year-old Franco-Israeli woman Mia Schem that was released on October 17.

According to Israeli authorities, at least 239 hostages, both Israeli and foreign, were taken captive by Hamas gunmen during the attack, which killed at least 1400 people.

The presence of the hostages in Gaza has complicated the ground operation in the enclave begun by Israeli forces last week, following an intense campaign of air strikes that Palestinian authorities say has killed more than 8000 people.

Four hostages have been released so far but efforts to secure additional releases through back channel efforts coordinated by Qatar appear to have been put on hold following the start of the ground operation.

600 targets hit

Israeli troops and tanks have attacked Gaza’s main northern city from both sides, three days after they began a major ground offensive in the Palestinian enclave that has drawn more international calls for civilians to be protected.

Israel’s military said it had struck more than 600 militant targets over the past few days as it expanded ground operations in the Gaza Strip, where Palestinian civilians are in dire need of fuel, food and clean water as the war enters its fourth week.

The militants said they had repelled an attempted push from Israel tanks into Gaza City from the east and were fighting them on the border with Israel.

“Our duty today is fight and fight,” the Islamic Jihad militant group, fighting alongside Hamas, said in a statement, adding that now was not the time for a truce.

The Israeli military said it had killed four prominent Hamas operatives.

“IDF troops killed dozens of terrorists who barricaded themselves in buildings and tunnels, and attempted to attack the troops,” it said.

Israel renewed warnings for civilians to move from the north of the tiny coastal enclave to the south as it began a big push into Gaza late on Friday to go after Hamas militants it says are hiding in a labyrinth of tunnels under Gaza City.

Many people have stayed in the city, afraid of becoming homeless like their forefathers and concerned by Israeli bombing further south.

The United Nations humanitarian office OCHA said 117,000 civilians are sheltering alongside patients and doctors in hospitals in the north.

Israel has accused Hamas of placing command centres and weaponry near hospitals, which the group denies.

Israel has said 1400 people were killed when Hamas-led militants stormed through the south of the country on October 7 and took 229 hostage.

Medical authorities in Hamas-run Gaza, which has a population of 2.3 million people, said on Monday that 8306 people – including 3457 children – had been killed.

OCHA said rescuers were struggling to reach people.

“As of 29 October, about 1800 people, including at least 940 children, have been reported missing and may be trapped or dead under the rubble, awaiting rescue or recovery,” it said.

The UN agency also said that armed groups continued firing rockets at Israel indiscriminately, with no fatalities reported.

-with AAP