The announcement comes after people began fleeing eastern Rafah after Israel ordered the evacuation of tens of thousands.
Hamas approved a proposal for a ceasefire in the Gaza war put forward by mediators Qatar and Egypt, the Palestinian group says, although Israel has not yet commented on the proposal.
“Ismail Haniyeh, head of the political bureau of the Hamas movement, held a phone call with the Prime Minister of Qatar, Sheikh Mohammed bin Abdulrahman Al Thani, and the Egyptian Intelligence Minister, Abbas Kamel, and informed them of Hamas's approval of their proposal on a ceasefire agreement,” the group said in a statement posted on its official website on Monday.
Details of the proposal were not immediately clear.
The statement was released after people began fleeing the southern Gaza Strip city of Rafah after Israel ordered the evacuation of tens of thousands of people as fears of a military attack grew. in full order there. More than 1.4 million displaced Palestinians have sought refuge in the area.
After Hamas' announcement, crowds of people gathered to cheer and celebrate in Rafah.
Israel and Hamas have been involved in indirect talks brokered by Qatar and Egypt over a possible ceasefire in the Gaza war and an exchange of Israeli captives for Palestinian prisoners.
Egyptian and Hamas officials have previously said that a possible ceasefire would take place in several stages in which Hamas would release Israeli captives it is holding in exchange for the withdrawal of Israeli troops from Gaza.
It was unclear whether the deal would meet Hamas's key demands for a permanent ceasefire, a complete Israeli withdrawal from Gaza and the return of displaced families to their homes.
Al Jazeera's Tareq Abu Azzoum, reporting from Rafah, said people began celebrating near the Kuwaiti Hospital upon hearing Hamas' announcement.
Children and the elderly are among those clapping and singing for the return to Gaza City, he said.
“Everyone… is happy because they believe that an invasion of Rafah will bring an unspeakable humanitarian catastrophe,” Abu Azzoum said. “Now they are very optimistic.”
The announcement brought “a sense of relief and calm” among Palestinians who are “exhausted and traumatized,” he said.
A displaced Palestinian in Rafah told Al Jazeera that he hopes to return home.
“We hope to return to our homes. …I'm from Gaza [City] himself,” he said.