US President Donald Trump and the leaders of Egypt, Qatar and Turkey have signed a declaration for bringing peace to Gaza at a summit in the Egyptian resort of Sharm el-Sheikh.

"A new and beautiful day is rising, and now the rebuilding begins," said Trump, praising regional leaders who helped cement the truce between Israel and Hamas.

Earlier, in his address to the Israeli parliament, the Knesset, the president told cheering lawmakers that "the long and painful nightmare is finally over".

Israel is releasing 250 Palestinian prisoners and more than 1,700 other Palestinians detained during the two-year military operations in Gaza in exchange for the last 20 living Israeli hostages held by Hamas.

The exchange, the first phase of Trump's peace plan, is also due to include the return of the bodies of 28 dead Israeli hostages.

In Egypt, Trump was all smiles in the company of Egyptian President Abdul Fattah al-Sisi and more than 20 other leaders from around the world.

"Everybody's happy," Trump said, adding that he had done "big deals before" but "this has taken off like a rocket ship".

"This took 3,000 years to get to this point, can you believe it? And it's going to hold up too," he said.

After the ceremony, President al-Sisi awarded Trump the Order of the Nile, a necklace made of pure gold considered to be Egypt's highest honour.

The Egyptian president called the day a "historic milestone that ends an agonising chapter".

Among the many world leaders at the summit who stood for a photo opportunity with Trump was Palestinian Authority President Mahmoud Abbas, who less than a week ago was blocked by the US from attending the UN General Assembly in New York.

Although the first phase of the ceasefire agreement has been enacted, there is a lingering question over what role the Palestinian Authority might eventually play in Gaza.

Trump said the second phase of negotiations on a peace agreement were under way.

During his address to the Knesset, the American president suggested the region was experiencing "the historic dawn of a new Middle East".

His words echoed the phrasing he used when Israel signed landmark deals with several Arab states during his first presidency.

"At last, not only for Israelis but also Palestinians, the long and painful nightmare is finally over," Trump told the Israeli parliament.

Adding to the jubilant atmosphere in the room were politicians' chants of "Trump, Trump, Trump".

The ceasefire that he helped to broker was "the most challenging breakthrough of them all, the most challenging breakthrough maybe ever", the US leader reflected. He indicated that ending the Russia-Ukraine war would be his next focus.

Trump gave an insight into some of his recent conversations with Israeli Prime Minister Benjamin Netanyahu, saying he felt the Israeli military campaign in Gaza was becoming "bad" and "heated".

"I said, 'Bibi you're going to be remembered for this far more than if you kept this thing going, going, going, kill, kill, kill'," Trump recalled.

Introducing Trump to parliament, Netanyahu called the US president the "greatest friend" Israel had ever had in the White House.

"Everything changed" in the American attitude to Israel's military campaign in Gaza when Trump was re-elected as US president last year, he said.

The Israeli prime minister thanked Trump for his "unremitting help" in securing the return of the remaining hostages - part of a group of 251 people seized during the 7 October 2023 attacks in southern Israel by Hamas.

Trump went on to offer a tribute of his own to his counterpart, saying: "He's not the easiest guy to deal with, but that's what makes him great."

Also welcomed to the Knesset alongside Trump were other key US officials, including Secretary of State Marco Rubio and Defence Secretary Pete Hegseth.

The names of Special Envoy Steve Witkoff and Trump's son-in-law and adviser Jared Kushner received particularly loud cheers from Israeli MPs, for their own roles in brokering the ceasefire. Kushner was accompanied by his wife Ivanka Trump.

Members of Trump's audience wore red caps. Instead of Trump's signature slogan "Make America Great Again", they read "Trump the Peace President".

Trump was told by the parliamentary speaker that there was "no-one" more deserving of next year's Nobel Peace Prize.

Some Israeli lawmakers who want the war in Gaza to continue did not attend.

Trump's speech was briefly interrupted as an opposition parliament member held up a piece of paper that said "Recognise Palestine". At least one person was escorted out of the room.

The ceasefire in Gaza took effect on Friday morning after Israel and Hamas agreed to the first phase of Trump's 20-point peace plan. The next phases are still to be negotiated.

Trump has said the ceasefire will hold, and that a "board of peace" he is due to head would quickly be set up to administer the territory.