Security forces in North Sinai, in coordination with tribal leaders, managed to release the two American tourists and their Egyptian tour guide who were kidnapped a few days ago.
Security Director Ahmed Bakr told state-run news agency MENA that they are now at the governorate's security headquarters.
"They said they were treated well by the kidnappers," he said. "The US embassy was notified in preparation to move them to Cairo."
Egyptian security officials had said earlier that they would not give in to demands of a Bedouin man who took two Americans and their local translator hostage in the Sinai Peninsula, AP reported.
Rev. Michel Louis, an American woman and their Egyptian guide were taken off a bus on a road between Cairo and Mount Sinai on Friday while on a church trip.
The hostage-taker, Jermy Abu Masouh, had said he would not free the two Boston natives until his uncle is released from jail.
Egyptian officials say they will not release the uncle until he completes a 15-day prison sentence for possession of drugs. Abu Masouh says his uncle was jailed for refusing to pay the police a bribe.
The officials spoke to AP Monday on condition of anonymity to discuss the negotiations.