The Israeli Defense Forces (IDF) killed three of its hostages after opening fire on them, mistakenly identifying them as 'threats', Times of Israel reported citing IDF spokesperson Daniel Hagari.

Hagari said the IDF bears responsibility for the "tragic incident."

"This is an area where the soldiers encountered many terrorists, including suicide bombers," he added.

Out of the three Israeli hostages, two have been identified as Yotam Haim, who was abducted from Kfar Aza and Samar Talalka, who was abducted from Nir Am.

However, the third hostage was not named by Hagari due to requests by their family, Times of Israel reported.

On being asked how the three hostages were able to escape Hamas captivity, Hagari said the military believes that "the three fled or were abandoned by the terrorists who held them captive."

"After the shooting, during a scan and examination, an immediate suspicion arose regarding the identity of the dead, and their bodies were quickly transferred for examination in Israel, where the hostages were identified," the IDF spokesperson said.

"This is a sad and painful event for all of us, and the IDF bears responsibility for everything that happened," he added.

He said the IDF is still working to "gather the facts and clarify the details of the incident."

Hagari further said that the IDF immediately began to investigate the incident. "This is a tragic event, which took place in a battle zone where the troops encountered many terrorists in recent days, and today, and fought hard battles."

"In some cases, suicide bombers were encountered, and also attacks in which terrorists tried to lure our forces and draw them into an ambush. Shortly after the tragic incident, another encounter with terrorists took place near the scene of the incident," Times of Israel quoted him as saying.

Hagari added that the IDF expresses deep sorrow for the disaster and shares in the grief of the families. "May their memory be blessed."