Egyptian Foreign Minister Mohammed Kamel Amr announced the ceasefire at a news conference here with US Secretary of State Hillary Clinton who joined negotiations.
Israel has accepted the deal, according to a statement released from the office of Israeli Prime Minister Benjamin Netanyahu.
Netanyahu consulted with US President Barack Obama before agreeing to the ceasefire.
For the truce to hold, "the rocket attacks [from Gaza] must end and a broader calm must return," Clinton said.
Israel launched its current offensive a week ago with the killing of Hamas military leader Ahmed Jabari.
