Fighting escalated in September when Israel intensified bombing and launched a limited ground invasion.

"Under the terms of the ceasefire, Israeli forces will withdraw from Lebanon within 60 days, while Hezbollah forces will be replaced by Lebanese army forces in the south of the country over the same period," BBC reported.

In a statement, the White House said: "Today, after many weeks of tireless diplomacy, Israel and Lebanon have accepted a cessation of hostilities between Israel and Lebanon."

"The announcement today will cease the fighting in Lebanon, and secure Israel from the threat of Hezbollah and other terrorist organizations operating from Lebanon," the statement said.

The White House said this announcement will create the conditions to restore lasting calm and allow residents in both countries to return safely to their homes on both sides of the Blue Line.

"The United States and France will work with Israel and Lebanon to ensure this arrangement is fully implemented and enforced, and we remain determined to prevent this conflict from becoming another cycle of violence," the statement said.

"The United States and France also commit to lead and support international efforts for capacity-building of the Lebanese Armed Forces as well as economic development throughout Lebanon to advance stability and prosperity in the region," the statement said.

UN welcomes ceasefire

The United Nations has welcomed the announcement of a ceasefire between Israel and Lebanon.

In a statement issued by his spokesperson, Secretary-General António Guterres expressed hope that the agreement “can put an end to the violence, destruction and suffering the people of both countries have been experiencing.”

“The Secretary-General urges the parties to fully respect and swiftly implement all of their commitments made under this agreement,” the statement noted.

He also urged the parties to undertake immediate steps towards the full implementation of Security Council resolution 1701 (2006).

“The UN Special Coordinator for Lebanon and the UN Interim Force in Lebanon (UNIFIL) both stand ready to support the implementation of this agreement, in line with their respective mandates,” the statement added.