The Israeli cabinet is set to back an end to military activities in the Gaza Strip, three weeks after operations there began, the BBC understands.
Top officials are expected to approve a ceasefire at a meeting later on Saturday, after which PM Ehud Olmert will address the nation, sources said.
The sources said the ceasefire deal did not involve Hamas.
It is not clear how Hamas will respond; its officials say the group will ignore any truce unless its demands are met.
Ahead of the move violence continued in Gaza, with 50 Israeli air strikes overnight. Rocket fire from Hamas militants also continued.
About 1,200 Palestinians have been killed since the violence began on 27 December. Thirteen Israelis - three civilians and 10 soldiers - have been killed during the campaign.
BBC NEWS | World | Middle East | Israel 'to announce ceasefire'