In addition, the zone permitted for fishing around the coastal Palestinian enclave will be returned to 15 nautical miles (about 27.8 km) and the transfer of fuels will be allowed, Xinhua news agency quoted an official statement as saying on Monday.

Lifting the restrictions "is conditioned with the preservation of calm and security stability", the statement read.

On August 11, Israel closed the Kerem Shalom crossing and later restricted the fishing zone around the besieged enclave in response to the incendiary balloons carrying explosives launched into southern Israel.

Also on Monday, the Islamic Hamas movement, that rules the Gaza Strip, confirmed in a statement that a truce with Israel was achieved "to contain the escalation and stop the Zionist aggression against our people".

In a statement, the office of Yahya Sinwar, Hamas chief in the Gaza Strip, said: "We reached an understanding after a round of dialogues and contacts, the latest of which was done by the Qatari Ambassador Mohammed Al-Emadi."

The statement also said that the deal includes "the return of the situation to what it was before the escalation", referring to the recent escalation that started on August 6.

The latest tension between Israel and Hamas, which has been ruling the enclave since 2007, began on August 6 when masked young men launched the incendiary balloons.