After their release, the Palestinians are to return to the places where they previously lived, for example in the West Bank or East Jerusalem.
Israel will initially transfer the detainees to Ofer Prison in the occupied West Bank for medical examinations by International Red Cross staff, according to the newspaper, which cited Israeli prison officials.
Al Jazeera reported that the prisoners to be released include 18 women and 24 teenage boys.
As a condition of the agreement, Hamas militants must first release Israeli hostages being held in Gaza before the Palestinian prisoners are released from Israeli custody, according to the report.
After their release, the Palestinians are to return to the places where they previously lived, for example in the West Bank or East Jerusalem.
The first group of Palestinian prisoners consisted of minors and women held in Israeli prisons on offences ranging from stone-throwing to attacks on police officers, including some who were arrested but never faced trial, Israeli newspaper Haaretz reported.