The prisoners given up by Beirut included a former wife of the Islamic State group's leader Abu Bakr al-Baghdadi, according to a senior Lebanese security official. The woman was arrested in Lebanon last year.
The release caps a long ordeal and drama over the fate of the Lebanese troops that has shaken the tiny Mediterranean country, which has seen innumerable spillovers from the civil war in neighboring Syria.
The militants brought the troops in three pickup trucks to a meeting point on the edge of the town, to be handed over to Lebanese authorities who were waiting along with Red Cross vehicles. The exchange was being delayed, however, and an unnamed Nusra Front member said the deal was being held up pending the entry of humanitarian aid to Arsal.
Masked Nusra Front fighters waving black al-Qaida flags were deployed in the area, including several who stood on the roof of a building overlooking the area.
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"My happiness is beyond description," said a Lebanese policeman shortly after he was brought to the point where the exchange will take place on the edge of Arsal.
Suleiman Dirani, one of those held captive, thanked "our brothers" from the Nusra Front for what he said was good treatment. "We are leaving here as we came, we are all in good health," he said.
Meanwhile, families and friends of the abducted soldiers and policemen who have held a months-long sit-in in downtown Beirut broke into a dance and cheered as news of the released reached them.
A senior Lebanese security official said the swap deal includes Saja al-Dulaimi, a former wife of Islamic State leader Abu Bakr al-Baghdadi. The official spoke on condition of anonymity in line with regulations. Al-Dulaimi was detained in Lebanon last year after she crossed into the country illegally with her current husband using forged identity cards.
The Nusra Front and the Islamic State group abducted 29 soldiers and policemen in Arsal last year when they briefly overran the town. Four have been killed in captivity while the Islamic State group has refused to negotiate on the nine captives it holds.