The Israelis and the Palestinian authorities are beginning the task of implementing the peace programme agreed by the two sides in Egypt yesterday.
The agreement was signed by the Israeli Prime Minister, Ariel Sharon, and the Palestinian President, Mahmoud Abbas.
Within days, Israel is expected to release several hundred Palestinian prisoners and move towards handing back some West Bank towns to Palestinian control.
However several militant groups, including Hamas and Islamic Jihad, have said they are not bound by the ceasefire deal, although commentators say they have been on an unofficial truce during recent negotiations.