The Islamic Hamas movement said Tuesday night that 1,027 Palestinian prisoners jailed in Israeli prisons will be freed in exchange for the release of Israeli soldier Gilad Shalit, who has been held captive in the coastal enclave since June 25, 2006.

Supporters of captured Israeli soldier Gilad Shalit celebrate outside the residence of Israel's Prime Minister Benjamin Netanyahu in Jerusalem on Oct. 11, 2011. Israeli Prime Minister Benjamin Netanyahu said Tuesday that Israel has reached a prisoner swap deal with the Islamic Hamas Movement and Israeli soldier Gilad Shalit held captive by Hamas will be "coming home" in a couple of days. [Yin Dongxun/Xinhua]

Khaled Meshaal, Politburo chief of Damascus-based Hamas, said in a televised speech aired on the official Hamas-run al-Aqsa TV that an honorable prisoner swap deal mediated by Egypt was reached between Hamas and Israel, under which 1,027 Palestinian prisoners, including 27 women, will be freed in exchange for Shalit.

Hamas' armed wing Izedein al-Qassam Brigades and two other minor armed groups, the Popular Resistance Committees and the Army of Islam, kidnapped Shalit in a cross-border raid on an Israeli army base southeast of the Gaza Strip in June 2006.

Egypt and Germany have been mediating between Israel and Shalit 's captors, who demanded the release of 1,000 prisoners as well as women and children under the age of 18 held in Israeli jails. According to official figures, there are more than 6,000 Palestinian and Arab prisoners held in Israeli jails.

Meshaal said the swap comprises of two parts -- 27 Palestinian women and 450 men, including 315 prisoners who had been sentenced to life imprisonment by Israel, will be freed within the next week, followed by the release of 550 Palestinians two months later.

He described the deal as "a national achievement" and expressed his appreciation to Egypt that sponsored the negotiations on the swap.

Meanwhile, Palestinian National Authority President Mahmoud Abbas, who is currently in a tour in Columbia and several European countries, said in a statement that he blessed the prisoner swap deal reached between Israel and Hamas.

Thousands of Hamas supporters spontaneously took to the streets right after the report that Hamas and Israel had reached a swap deal was published. They waved Hamas' green flags, chanted slogans and delivered candies and sweets in support for the deal.

Witnesses said that militants of Hamas' armed wing al-Qassam Brigades took to the streets and intensively fired in the air to celebrate reaching the swap deal with Israel.

Abu Obeida, the spokesman of al-Qassam Brigades, said "Yes, we confirm. We fully confirm that an agreement on Shalit's deal was reached with Israel."

"The implementation will be in the coming few days after finishing all other arrangements needed to finalize the deal," said Abu Obeida, adding that the deal "had fully met the conditions of the Palestinian armed resistance."

Well-informed sources closed to Hamas said that the deal of prisoner exchange will include Palestinian President Mahmoud Abbas ' Fatah Party leader Marwan Barghouti and Ahmed Sa'adat, secretary- general of the Popular Front for the Liberation of Palestine before he was confined by Israel.

Meanwhile, Ahmed Bahar, a senior Hamas leader and deputy speaker of the Palestinian Legislative Council said that finalizing the prisoner deal "is a great historic achievement and a huge Palestinian celebration."

"The deal was finalized in accordance to the demands of the Palestinian resistance. It is a Palestinian victory showing that the choice of resistance is better than absurd negotiations," said Bahar.