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U.S. President Donald Trump said that the "Board of Peace" reached an agreement for the complete disarmament of Palestinian Hamas militants and other armed groups in Gaza, Reuters reports.
Trump cast it as a "major milestone in the implementation of the Trump 20-Point Plan" to end Israel's war in Gaza.
Trump said on social media that the deal would be carried out in phases, with Israeli forces withdrawing as disarmament proceeds and an International Stabilization Force working with a new Palestinian police force to secure the area.
He thanked mediators Egypt, Qatar and Türkiye.
"This agreement is a critical step towards Gaza finally being governed by a new Palestinian government that will work closely with the Board of Peace to help the Palestinian people," Trump said.
"At the same time, Israel will have the security it deserves," Trump added.
Earlier in the day, Reuters cited sources as saying that talks between mediators and Hamas leaders in Cairo on implementing a U.S.-brokered Gaza peace plan made rare progress although an Israeli official said proposed terms were not satisfactory.
Israeli strikes killed at least six Palestinians in Gaza on Thursday, including two children, medics said.
A senior Hamas official has told the BBC the group has agreed to the Board of Peace's plan to completely disarm in Gaza and that an official statement would be released soon. Israel has yet to comment.
The board, created and led by Trump, said in a statement that the agreement concludes months of "intensive, good faith negotiations", and that its focus is now on implementation.