Terror-labelled Hamas and Israel confirmed the handover that took place on Monday evening.
The handover began at 20 o'clock and was completed an hour and a half later.
"Israel has received, through the Red Cross, the coffin with a dead hostage who was handed over to the Israeli military and Shin Bet inside the Gaza Strip", announced the Israeli Prime Minister's office and added that the remains will be taken to Israel for identification.
The remains are said to have been found in the city of Gaza and the Tuffah district. The area is currently located on the side of the so-called yellow line controlled by Hamas.
The message comes after a spokesperson for the Israeli government earlier in the day announced that they had allowed a group consisting of Red Cross employees, Egyptian rescue workers and a Hamas member to search for remains of dead Israeli hostages in Gaza.
According to the spokesperson, the group has been given the green light to cross the yellow line to the Israeli-controlled side, "under close supervision from the Israeli military".
According to the ceasefire agreement, Hamas is to return the bodies of a total of 28 deceased Israeli hostages.
