Israel has moved to a defensive-only position in Gaza and will not actively strike, said an official who was not authorised to speak to the media on the record.
The official said no forces have been removed from the territory.
Still, Shifa Hospital director Mohamed Abu Selmiyah told the AP on Saturday that Israeli strikes killed five Palestinians across Gaza City, while bombing had "significantly subsided".
The army statement came hours after President Donald Trump ordered Israel to stop bombing Gaza once Hamas said it had accepted some elements of his plan.
Trump welcomed the Hamas statement, saying: "I believe they are ready for a lasting PEACE".
Trump appears determined to deliver on pledges to end the war and return all hostages ahead of the second anniversary on Tuesday of the attack that sparked it.
His proposal, unveiled earlier this week, has widespread international support.
On Friday, Israeli Prime Minister Benjamin Netanyahu's office said Israel was committed to ending the war that began when Hamas attacked Israel on October 7, 2023.
Netanyahu is under increasing pressure to end the conflict.
The official told the AP that Netanyahu put out the rare late-night statement on the Sabbath, saying that Israel has started to prepare for Trump's plan due to pressure from the US
The official also said a negotiating team was getting ready to travel, but there was no date specified.
A senior Egyptian official said US envoy Steve Witkoff will travel to Egypt to head the US negotiating team in the talks to release the Israeli hostages in exchange for Palestinians in Israeli detention.
Delegations from Israel and Hamas will join the talks, which will also discuss maps showing the expected withdrawal of Israeli forces from certain areas in Gaza, said the official who spoke on condition of anonymity.
The official involved in the ceasefire negotiations also said Arab mediators are preparing for a comprehensive dialogue among Palestinians aimed at unifying their position toward Gaza's future.
Under the plan, Hamas would release the remaining 48 hostages — around 20 of them believed to be alive — within three days.
It would also give up power and disarm.
In return, Israel would halt its offensive and withdraw from much of Gaza, release hundreds of Palestinian prisoners and allow an influx of humanitarian aid and eventual reconstruction.
Hamas said it was willing to release the hostages and hand over power to other Palestinians, but that other aspects of the plan require further consultations among Palestinians.
Its statement also didn't address the issue of Hamas demilitarising, a key part of the deal.
Amir Avivi, a retired Israeli general and chairman of Israel's Defence and Security Forum, said while Israel can afford to stop firing for a few days in Gaza so the hostages can be released, it will resume its offensive if Hamas doesn't lay down its arms.
Others said that while Hamas suggests a willingness to negotiate, its position fundamentally remains unchanged.
This "yes, but" rhetoric "simply repackages old demands in softer language," said Oded Ailam, a researcher at the Jerusalem Centre for Security and Foreign Affairs.
Palestinians in Gaza tried to piece together what the plan means in real terms.
"I hope Hamas ends the war, because we are truly tired," said Mohammad Shaat in Khan Younis, as anxious Palestinians roamed the shattered streets.
