A statement from the two militant factions said they had "suspended military operations against the Zionist enemy," on the condition that Israel ceased all operations against them and lifted blockades on Palestinian regions.
Israel says the ceasefire is aimed at giving Palestinian militants time to regroup for more violence against Israelis.
Gideon Meir, Foreign Ministry deputy director-general:
"This ceasefire is a ticking bomb because it actually maintains the infrastructure of terror."
The militant's demands in return for the truce include:
"The total cessation of all forms of Zionist aggression against our people, of incursions, demolitions, closures, sieges on cities, villages and refugee camps, including the siege imposed on President Yasser Arafat, the bulldozing of agricultural land, attacks on land and property...the total cessation of all assassination operations, massacres and of all arrest and deportation campaigns against our people, their leaders and their fighters."
Israel has said it would begin withdrawing forces from Gaza on Monday in support of a new US-backed peace plan.
A joint truce declaration by all five Palestinian militant factions was scuppered because of wrangling over wording.
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