Hamas called a unilateral Gaza ceasefire, effective 5pm today, and a Palestinian official said the rival Fatah faction was also holding fire.
Previous attempts to stem a flare-up of internal violence that has killed at least 40 Palestinians fell apart within hours, and it was unclear whether this one would be different.
"We will unilaterally implement a ceasefire from 8 this evening," said Hamas spokesman Fawzi Barhoum.
A Palestinian official said that President Mahmoud Abbas, who leads Fatah, "gave orders to all security forces and Fatah men to cease fire immediately".