Prime Minister Benjamin Netanyahu's office said in a statement the remains were handed over to Israeli forces in the Palestinian territory by the Red Cross.
There has not yet been formal identification.
Hamas' armed wing had said it would hand over the body of Hadar Goldin, a military officer killed in an ambush in the Gaza Strip during the 2014 Israel-Hamas war.
Hamas said that it found the body of Goldin in a tunnel in the enclave's southernmost city of Rafah on Saturday.
Goldin was killed on August 1, 2014, two hours after a ceasefire took effect ending that year's war between Israel and Hamas.
The return of the remains of Goldin, who has become an Israeli symbol, would be a significant development in the US-brokered truce.
It would also close a painful 11-year saga for his family.
Dozens of people gathered along intersections where the police convoy carrying the remains drove from southern Israel to Tel Aviv, holding Israeli flags and paying last respects to what is believed to be a fallen soldier.
At the start of the weekly cabinet meeting, Netanyahu said that holding the body for so long has caused "great agony of his family, which will now be able to give him a Jewish burial".
Since an October 10 ceasefire came into effect in the war raging since 2023, Hamas has released 20 living hostages as part of US President Donald Trump's plan to end the war.
In exchange, Israel has freed nearly 2000 Palestinian convicts and wartime detainees.
The agreement also included handing over remains of 28 deceased hostages held in the strip in exchange for the remains of 360 militants held by Israel.
Before Sunday, the bodies of 23 hostages had been handed over to Israel, which has transferred remains of 300 Palestinians although not all have been identified, according to Gazan health authorities.
Palestinian militants took 251 hostages, living and deceased, in October 2023 when Hamas attacked Israel.
Another four hostages were already being held in the enclave prior to that.
with AP
