Israel's government ratified a ceasefire with the Palestinian militant group Hamas on Friday, clearing the way to suspend hostilities in Gaza within 24 hours and free Israeli hostages held in Gaza within 72 hours after that.

The Israeli cabinet agreed to the deal early on Friday morning, roughly 24 hours after mediators announced an agreement to free Israeli hostages in exchange for Palestinian prisoners, in the first phase of US President Donald Trump's initiative to end the two-year war in Gaza.

"The government has just now approved the framework for the release of all of the hostages – the living and the deceased," Israeli Prime Minister Netanyahu's English-language X account said.

An Israeli government spokesperson said the ceasefire would go into force within 24 hours of government approval of the deal. After that 24-hour period, the hostages held in Gaza would be freed within 72 hours.

Twenty Israeli hostages are still believed to be alive in Gaza, while 26 are presumed dead, and the fate of two is unknown. Hamas has indicated that recovering the bodies of the dead may take longer than releasing those who are alive.

Under the deal, fighting will cease, Israel will partially withdraw from Gaza and Hamas will free all remaining hostages in exchange for hundreds of prisoners held by Israel.

Fleets of trucks carrying food and medical aid would be allowed to surge into Gaza to relieve civilians, hundreds of thousands of whom have been sheltering in tents after Israeli forces destroyed their homes and razed entire cities to dust.

Israelis and Palestinians alike rejoiced after the deal was announced, the biggest step yet to end two years of war in which over 67,000 Palestinians have been killed.

Hamas' exiled Gaza chief Khalil Al-Hayya said he had received guarantees from the United States and other mediators that the war was over.

Two senior US officials said Washington will deploy 200 troops as part of a joint task force for Gaza stability, with no Americans actually on the ground in the Palestinian enclave.

The officials, speaking to reporters on condition of anonymity, said the 200 would be a core part of a task force that would include representatives from the Egyptian armed forces, Qatar, Turkey and probably from the United Arab Emirates.

The accord, if fully implemented, would bring the two sides closer than any previous effort to halt the war.

Much could still go wrong. Even after the deal was signed, a Palestinian source said the list of Palestinians to be released was not finalised. The group is seeking freedom for some of the most prominent Palestinian convicts held in Israeli jails, as well as hundreds of people detained during Israel's assault.

Further steps in Trump's 20-point plan have yet to be discussed. Those include how the shattered Gaza Strip is to be ruled when the fighting ends and the ultimate fate of Hamas, which has so far rejected Israel's demands it disarm.

Netanyahu also faces skepticism from within his governing coalition. Far-right National Security Minister Itamar Ben-Gvir said he would vote to bring down the government if Hamas is not dismantled. He also said he would vote against the deal, as expected.

Far-right members of Netanyahu's coalition have long opposed any deal with Hamas. Finance Minister Bezalel Smotrich said Hamas must be destroyed once the hostages are returned.

But the announcement of an end to fighting and return of hostages was greeted with jubilation.

"Thank God for the ceasefire, the end of bloodshed and killing," said Abdul Majeed Abd Rabbo in Khan Younis in southern Gaza.

"All of the Gaza Strip is happy, all the Arab people, all of the world is happy with the ceasefire and the end of bloodshed."

Einav Zaugauker, whose son Matan is one of the last hostages, rejoiced in Tel Aviv's so-called Hostages Square, where families of those seized in the Hamas attack that triggered the war two years ago have long assembled.

"I can't breathe, I can't breathe, I can't explain what I'm feeling ... it's crazy," she said, speaking in the red glow of a celebratory flare.

In Gaza, Israeli attacks continued before the official start of the ceasefire, but there were far fewer fatalities than the scores killed on a daily basis in recent weeks.

Local health authorities reported seven dead in two separate Israeli strikes.

Trump said he would head to the region on Sunday to possibly attend a signing ceremony in Egypt, and Israeli Knesset Speaker Amir Ohana invited him to address the legislative body, which would be the first such speech by a US president since 2008.

Trump said he hoped the deal would lead to "an everlasting peace" in the region. (Reuters)