GOVERNMENT and rebel forces exchanged dozens of prisoners today following their capture during fighting in Ukraine, as part of a ceasefire agreement sealed earlier this month.

The transfer took place in the dark of early morning outside the main rebel stronghold of Donetsk under the supervision of international observers.

Thirty-six Ukrainian soldiers were released to add to 21 soldiers freed the day before, Ukrainian President Petro Poroshenko said.

Ukrainian forces handed over 31 rebels detained over the course of the five-month conflict.

A ceasefire between separatists and the Ukrainian military took effect last Friday but has been serially violated.

The Ukrainian servicemen were driven from the local security services headquarters and taken to a location north of the city.

They were met by Ukrainian military officials, some of whom were armed.

Hundreds of prisoners are believed to be held by both sides, although no firm figure has been provided by either.