Israeli Prime Minister Benjamin Netanyahu, who presided over the security cabinet meeting, said he had approved a ceasefire in Lebanon to focus on Iranian threats and isolate Hamas.
He also stressed that he would maintain complete freedom of action after the ceasefire and attack Hezbollah again if it violated the agreement.
He also said of the ceasefire period, "It depends on how the situation unfolds."
The ceasefire agreement between the two sides comes more than a year after the Gaza war between Israel and Hamas, which began in October last year, turned into an armed conflict with Hezbollah.
The cease-fire proposed by the U.S. to Israel and Hezbollah will have a 60-day transition period and the two sides will begin negotiations to establish a border in the future.
During this period, Israeli forces were withdrawn from southern Lebanon and Hezbollah was withdrawn north of the Ritani River.
The U.S.-led management committee plans to monitor whether this is implemented well.
Earlier, the Lebanese government and Hezbollah said they had largely agreed to a ceasefire, although there were some unresolved issues.
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