A chief Israeli military spokesman has reportedly confirmed the now 25-year-old is back on home soil, saying: "Gilad Shalit has returned home."
Meanwhile, the first buses carrying Palestinian prisoners being freed as part of the deal have been welcomed amid jubilant scenes in Gaza after crossing the border from Egypt.
And an interview with the freed Israeli soldier on Egyptian television appeared to show him looking thin and nervous, but well.
"You can't imagine how I felt when I heard I was going home," he said
"I received this news a week ago and I felt then that this would be my last chance to be free.
"They were long years. But I always thought the day would come when I finally get out of captivity."
An emotional Shalit speaks to his parents on the telephone
"Of course I miss my family very much. I also miss my friends.
"I hope this deal will lead to peace between Palestinians and Israelis and that it will support cooperation between both sides."
The exchange between Israel and its bitter enemy Hamas sees Israel freeing a total of 1,027 prisoners - hundreds of them from life sentences imposed for killing Israelis.
Gilad Shalit was a 19-year-old corporal when he was captured by three Gaza-based militant groups in a deadly cross-border raid on June 25, 2006.
Three days after he was snatched, Israel launched a huge military operation against Gaza to try to secure his release, which lasted five months and left more than 400 Palestinians dead.
But the operation was unsuccessful and in June 2007, Hamas seized power in Gaza, holding the young soldier at a secret location until now.
Very first video of Shalit's reception to Israel
Shalit reunites with parents
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