Two sources from Hezbollah said that the Lebanese group applied the ceasefire from its side, according to a Reuters report.
In tandem, a senior Israeli official told Reuters that Israel "was in a ceasefire," but would not withdraw its troops from territories it has occupied in southern Lebanon.
Earlier on Friday, a US official told Reuters on condition of anonymity, "Hezbollah and Israel have agreed to a ceasefire."
The US official said negotiators from the United States and Qatar brokered the agreement with assistance from Iran, amid intensified diplomatic efforts to halt fighting along the Israeli-Lebanese border.
"We understand that after the exchange of fire earlier today, Israel and Hezbollah are now in a ceasefire," the official added.
The reported agreement comes after the Israeli occupation army killed at least 18 Lebanese in strikes in south and east Lebanon in violation of the US-Iran agreement that was signed on Wednesday to end all hostilities, including in Lebanon between Tel Aviv and Hezbollah.
It comes hours after US Vice President JD Vance sent a stern rebuke to Tel Aviv in apparent reference to Netanyahu's refusal to respect the US-Iran agreement.
“Anybody in Israel who thinks their biggest problem is the president of the United States needs to wake up and smell the reality of the situation that country is in.," noted Vance while speaking at the White House podium.
The Israeli strikes were the deadliest in the past 72 hours since Iran and the United States agreed on Wednesday to halt the wider Middle East war.
On Thursday, mere hours after the United States and Iran signed a memorandum of understanding stipulating the cessation of hostilities on all fronts, including Lebanon, Israeli strikes killed three Lebanese.
In the evening, refusing to abide by the Washington-Tehran deal, Israeli Prime Minister Benjamin Netanyahu stated that Israel would maintain its strikes and occupation of the south of Lebanon.
Since the start of its expanded attacks in Lebanon on 2 March, the Israeli occupation army has killed 3,912 people and injured 11,873, according to figures from the Lebanese Ministry of Health.
The new agreement between Hezbollah and Israel comes after the US–Iran memorandum of understanding, which was signed electronically by US President Donald Trump and Iranian President Masoud Pezeshkian.
Pakistani Prime Minister Shehbaz Sharif said the agreement aims to end the war between Washington and Tehran and halt fighting across related regional fronts, including Lebanon.
Iranian Foreign Minister Abbas Araghchi previously said that ending the Israeli war in Lebanon is an integral part of the agreement, adding that it also includes provisions for an Israeli withdrawal from Lebanese territory.
Israel's latest escalation in Lebanon began on 2 March, amid the backdrop of the US-Israeli war against Iran, which started on 28 February.
Shortly after, Israel launched a ground invasion into Lebanon in late March. Israeli bombardment amid so-called "evacuation warnings", has forcibly displaced about 1.2 million Lebanese.
Diplomatic efforts to halt the fighting began in April, when the United States brokered a 10-day cessation of hostilities between Israel and the Lebanese government to facilitate humanitarian aid deliveries and launch direct peace talks.
Hezbollah was not a formal signatory to the arrangement but observed the pause, while Israeli forces remained deployed inside southern Lebanon and strikes continued.
The truce was extended for three weeks on 23 April and again on 15 May for an additional 45 days, but the Israeli side paid no attention to respecting the deal.
Efforts to secure a more durable settlement faced setbacks in early June. Under a US proposal discussed between 1 June and 4 June, Israel agreed to halt strikes on Beirut's southern suburbs in exchange for a Hezbollah freeze on rocket fire.
A framework for establishing pilot de-escalation zones was reached on 3 June, but Hezbollah rejected the proposal a day later, insisting on a permanent ceasefire tied to a complete Israeli withdrawal from Lebanese territory.
The Israeli occupation army has demolished multiple villages along the border, and has forced about 1.2 million Lebanese to flee.
Israel now occupies 608 square kilometres (234 square miles) in Lebanon, according to experts with the Carnegie Middle East Center.
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