The first buses carrying those released left Ofer Prison on Monday in the West Bank near Jerusalem, headed for Ramallah.
Hamas had taken 94 hostages during the October 7, 2023, attack on Israel.
“The conflict has spread beyond Gaza, including into the Red Sea.”
The United States and Israel opposed a ceasefire, saying it would only benefit Hamas.
“Netanyahu, who committed one of the greatest atrocities of the last century, has already gone down in history as the butcher of Gaza,” Mr Erdoğan said.
“The nightmare in Gaza is more than a humanitarian crisis.”
Israeli army claims dozens of casualties in its overnight operation in Gaza strip
This took place as ground operations expanded in the Palestinian territory.
Since Hamas militants launched an onslaught in Israel on October 7, more than 4,000 people have died on all sides of the conflict.
Malaysia has long supported the Palestinian cause, with Prime Minister Anwar Ibrahim saying he did not agree with Western pressure to condemn Hamas.
