The man named by Israel, Qaid Farhan al-Qadi, worked as a guard at a factory on a kibbutz when terrorist-stamped Hamas carried out attacks against Israel on October 7.
al-Qadi comes from a Bedouin community, where a majority of the residents are Muslims.
The IDF says that the rescue was made during a "complex operation in southern Gaza". The rescued person is said to be in good health and was examined at the hospital on Tuesday.
"A miracle"
al-Qadi has two wives and is the father of eleven children. The Israeli media company Keshet 12 showed how his family made their way to the hospital after finding out that he was alive.
The organization that works to free the hostages said that al-Qadi's opportunity to return home "is nothing but a miracle; he has endured 326 days in captivity".
But the organization Hostages families forum stated in a statement that the only way to get a majority of the hostages free is through an agreement.
The organization receives some support from IDF spokesperson Daniel Hagari, who said that they are gathering more intelligence information for new operations – but that it is not enough:
"We cannot get everyone home just through rescue operations."
Last week, the Israeli military was able to return the remains of six hostages in southern Gaza.
Israel estimates that 104 of the 251 hostages taken by Hamas on October 7 are still in Gaza, including 34 who have been confirmed dead by the IDF.
Eight freed
So far, the IDF has managed to free eight hostages in military operations; two of which resulted in the deaths of many Palestinians. About 1,150 people are estimated to have been killed in the terrorist attack, mostly civilians.
Since Israel declared war on Hamas after the attack, more than 40,000 people in Gaza have been killed in Israeli attacks, according to health authorities in the Hamas-controlled strip.
Large demonstrations against Prime Minister Benjamin Netanyahu's way of waging war – and inability to bring home the hostages – have been held in several Israeli cities since the outbreak of war.