A spokesperson for Israeli Prime Minister Benjamin Netanyahu confirmed on Thursday that the country's Cabinet has approved a unilateral ceasefire after more than a week of clashes with Gaza Strip militants.
The ceasefire comes without preconditions.
Hamas, the Palestinian organization that controls the Gaza Strip, said shortly after the ceasefire is "mutual."
Taher al-Nuno, an advisor to Hamas chief Ismail Haniyeh, said it would come into force at 2 am on Friday (2300 GMT on Thursday), echoing earlier Israeli media reports on the start time.
He said the Palestinians' "armed resistance" will honour the ceasefire so long as it is upheld by the Israeli side.
The plan was based on an Egyptian proposal, according to media reports. An Egyptian security source had told dpa late on Thursday, but before the Israeli announcement, that a ceasefire was imminent and that it would be guaranteed by Cairo.
"Egypt guarantees stopping the launch of rockets from Gaza after Israel’s announcement of stopping fire from its side," the source said.
US President Joe Biden had told Israeli Prime Minister Benjamin Netanyahu on Wednesday that he "expected a significant de-escalation" to start. On Thursday, UN chief Antonio Guterres said the fighting had to stop immediately.
Some 230 Palestinians have been killed in Israeli air raids and 12 people in Israel killed by rocket fire from Gaza.
Shortly after the Israeli announcement, air raid sirens sounded again in Israeli territory bordering the Gaza Strip.
German Foreign Minister Heiko Maas also called for a ceasefire during a visit to Israel and the Palestinian Territories on Thursday.
According to the Israeli army, some 4,070 rockets were fired from the Gaza Strip in Israel's direction over the past week and a half.
The news came on the day that Israel's army said it had "neutralized" an extensive tunnel system dug by Hamas militants in the Gaza Strip. Other targets struck included the house of a Hamas commander in Khan Yunis, a Hamas arms factory and rocket launchers.
The Israeli army said that the tunnels were built during the course of five years and allowed Hamas, which rules the Gaza Strip, to move ammunition, fighters and food within the coastal strip.
Israeli forces and Gaza Strip militants began firing missiles back and forth nearly two weeks ago after days of tension regarding restrictions in Jerusalem, access to holy sites and the expected eviction of Palestinian families from homes in the city.
