There was no immediate confirmation of his arrival from Israeli officials, but the station ran the strapline "Gilad Shalit is in Israel" over images taken from Egyptian state TV showing the soldier wearing a black baseball cap.
Throngs of excited Palestinians gathered in the West Bank and Gaza from early Tuesday, preparing to greet prisoners released under the landmark exchange deal.
A group of 477 Palestinian prisoners, some held in Israeli jails for decades, were to be freed under a deal that will see a total of 1027 Palestinians released in exchange for captured Israeli soldier Gilad Shalit, who was released by Hamas into Egyptian care at 8.15am (1715 AEDT).
TURKEY CONFIRMS TO HOST PALESTINIAN PRISONERS: REPORT
Some of the Palestinian prisoners released as part of a deal to hand over captured Israeli soldier Gilad Shalit will be taken in by Turkey, the state-run Anatolia news agency reported Monday.
The agency quoted diplomatic sources as saying that Turkey would host some of the released prisoners along with Qatar and Egypt.
Turkey considers the deal between Israel and Hamas as a contribution to peace in the region and will play its part by taking in released Palestinian prisoners, Anatolia said.
Turkish news channel NTV said 10 of the prisoners will arrive in Istanbul by plane from Egypt, but gave no further details.
A group of 40 Palestinian detainees will be sent to Turkey, Syria and Qatar, Hamas said on Monday.
Israel began releasing 1,027 prisoners in two stages Tuesday in exchange for the handover of solider Gilad Shalit, who was snatched by Gaza militants in June 2006.
THOUSANDS GATHERED NEAR RAMALLAH
At the Ofer prison near the West Bank city of Ramallah, thousands of men and women gathered in the early hours of the morning, braving the cold air, many of the men pulling on cigarettes and pacing to keep warm.
Some in the crowds waved green flags of the Hamas movement, which inked the landmark exchange deal with Israel, as well as the yellow flags of the Fatah party of Palestinian president Mahmud Abbas - and the Palestinian flag.
The atmosphere was festive, with some chanting "national unity, national unity" and clapping their hands.
Dozens of people were also gathering on the Mount of Olives in annexed east Jerusalem, awaiting the 15 prisoners who were expected to arrive home during the morning.
Outside Ofer prison, Lulia Makhamra, 62, was standing with a Palestinian flag draped over her head as she waited for the return of her son Mohammed Awad, who has served 10 years of a life sentence.
"I'm feeling a truly beautiful happiness, even though my other son is still in prison," she said.
"I didn't believe that I would live to see Mohammed, but today I feel very, very happy."
Palestinian radio said the workers union in the West Bank called for employees to stop work at 10am "to welcome home our prisoners".
At the Rafah crossing in southern Gaza, a delegation of senior Hamas officials accompanied by representatives of the prisoners families were waiting impatiently for 297 prisoners due to be released into Gaza.
When the 297 prisoners arrive in Rafah, they will travel in convoy up to Gaza City where they will enter the city in a triumphal procession, kicking off massive celebrations which will be presided over by Hamas leader Ismail Haniyeh.
Hamas's Al-Aqsa television station was running wall-to-wall coverage of the exchange, playing patriotic songs over footage of crowds awaiting the prisoners' return.
In Gaza City, the streets were draped with the green flags of Hamas, which was one of three Gaza-based groups that participated in the 2006 capture of Shalit.
Tuesday's operation will see Israel freeing 477 prisoners, 297 of whom will be sent to Gaza.
But only 133 of them are going 'home' - with the rest being exiled there from their homes in the West Bank and east Jerusalem.
SHALIT RELEASED TO EGYPT
Captive Israeli soldier Gilad Shalit was on Tuesday freed from five years of Hamas captivity and entered Egypt in a move set to prompt the release of 477 Palestinian prisoners.
"He was transferred to Egypt by Hamas 10 minutes ago, and an Israeli colonel will check his state of health," he told AFP. "Afterwards, he will be transferred to Israel at around 9.00 am (0700 GMT)."
News of his release to Egypt came after hours of swirling rumours and speculation over his movements, with a flurry of claims denied by Israeli officials and Hamas leaders in Gaza.
His transfer to Egyptian custody was expected to spark the release of hundreds of Palestinian prisoners in a long-awaited deal signed last week between Israel and its sworn enemy Hamas under which the Jewish state will free a total of 1,027 prisoners to secure the release of the now 25-year-old soldier.
Shalit has been held by militants in Gaza for more than five years and the deal marks the highest price ever paid for the release of one person.
And if all goes to plan, it will be the first time in 26 years that a captured soldier has been returned to the Jewish state alive.
Earlier an Israeli military spokeswoman confirmed that all the prisoners destined for Gaza and those to be deported overseas had reached the Kerem Shalom crossing at the southernmost point of the Israel-Gaza border.
"The third (and final) convoy of prisoners has arrived, everything is going to plan," army spokeswoman Avital Leibovich told AFP, denying there was any delay. She had earlier said the prisoners would enter Gaza around 6:30am (0430 GMT).
An AFP correspondent in Kerem Shalom saw the final two coachloads of prisoners had entered the crossing, escorted by two prison service vans.
With all the prisoners in place for the exchange, Israel was waiting for confirmation from either a Red Cross representative or an Egyptian official in Gaza that they had seen Shalit and that he was alive and well.
After receiving confirmation, Israel was to order the release of 27 women prisoners.
Some 297 prisoners are to be released into Gaza, leaving Israel through Kerem Shalom, then being driven along the border to the Egyptian side of the Rafah crossing where they would be greeted by top Hamas figures from the Damascus-based leadership, including exiled chief Khaled Meshaal.
"We are on the way to Rafah with Mussa Abu Marzuk and Sheikh Salah al-Aruri to welcome the liberated prisoners," spokesman Izzat al-Rishq told Hamas's Al Aqsa television in Gaza, referring to Meshaal's deputy and another senior Hamas official.
"The operation to return Shalit to the Israeli side will take place at the moment we are assured that all the prisoners have arrived at the Egyptian border."
Another 40 prisoners who are to be deported overseas will remain in Egypt before being sent to host countries, which include Turkey, Syria and Qatar.
Emotions were running high across Israel, where Shalit, held for over five years, has enormous symbolic importance.
And Palestinian across the West Bank and Gaza were also preparing to give a heroes' welcome to the returning prisoners.
Shalit was a 19-year-old corporal on duty along the Gaza border when he was captured on June 25 2006 by militants from three Gaza-based groups, including Hamas.
Three days after he was snatched, Israel launched a massive military operation against Gaza in a bid to secure his release, which lasted five months and left more than 400 Palestinians dead.
After entering Israel, Shalit will be flown to Tel Nof airbase in southern Israel where he will meet with his family and meet Israeli leaders.
Shalit's family, his parents Noam and Aviva, his brother Yoel and sister Hadass, left their home in Mitzpe Hila in northern Israel shortly after dawn and were flown by helicopter to Tel Nof airbase near Tel Aviv where they will be reunited with the now 25-year-old soldier, an AFP correspondent said.
