The bodies of an Israeli couple killed in Hamas' deadly October 7 attack and held in Gaza have been returned to Israel.

'In a special operation by the (security agency) and the (military) in the Gaza Strip, the bodies of two of our hostages held by the murderous terrorist organisation Hamas were returned to Israel: Judy Weinstein-Haggai and Gad Haggai from Kibbutz Nir Oz, may their memory be blessed,' President Benjamin Netanyahu said in a statement on Thursday.

'Judy and Gad were murdered on October 7 and abducted to the Gaza Strip,' he added.

'Together with all the citizens of Israel, my wife and I extend our heartfelt condolences to the dear families. Our hearts ache for the most terrible loss,' he added.

Their bodies were recovered from the southern Gaza city of Khan Younis.