Prime Minister Olmert says Israel will end its assault on Gaza, after 22 days of conflict. But troops will remain on the ground.
On Sunday, Hamas also announced an immediate ceasefire with Israel in Gaza, according to Hamas officials. The group said it would hold fire for a week to give Israel time to withdraw its forces.
The cessation of hostilities was earlier cast into doubt by fresh rocket fire into Israel and an Israeli air strike on militants in Gaza.
Conflict has killed more than 1,100 Palestinians and 13 Israelis.
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