"We agreed on a 24-hour truce in order to give time to negotiations," said Azam el-Ahmed, the head of the Palestinian delegation in Cairo.
He said both sides should take advantage of every minute in the coming 24 hours to reach a deal on a permanent truce.
The decision came an hour before the current five-day truce ends. Media reports said the both sides are to sign an agreement on long-term ceasefire before the end of the truce.
Azam el-Ahmed today said that no progress was made in the ceasefire negotiations hosted by Egypt.
"There is no progress at any point due to Israeli procrastination. Until now there is no progress regarding Palestinian demands," MENA news agency quoted him as saying.