"Hamas's (reaction) to Trump's plan represents the position of the Palestinian resistance factions, and the Islamic Jihad participated responsibly in the consultations that led to this decision," the Iran-backed Islamic Jihad, which is smaller than Hamas but seen as more hardline, said in a statement.
Hamas, the Palestinian militant group that controls Gaza, on Friday accepted certain key parts of US President Donald Trump's plan, including ending the war, Israel's withdrawal and the release of Israeli hostages and Palestinian captives.
Hamas's stance might raise the spirit of Gazans, who had watched one ceasefire effort after another fail as Israeli strikes pulverised the strip during the past two years, created a humanitarian crisis and displaced millions.
The Israeli military issued a warning on Saturday for residents of Gaza city, saying it remained a "dangerous" combat zone.
News website Axios reported the Israeli military would shift to defensive operations in Gaza and halt its plan to seize Gaza City.
Israeli air strikes persisted early on Saturday but they were less intense after US President Trump had called for a halt to the bombing saying Hamas was ready for peace.
Israeli fire killed six people across the Gaza Strip, local authorities said.
Netanyahu's office said early on Saturday that Israel was preparing for an "immediate implementation" of the first stage of Trump's Gaza plan for the release of Israeli hostages following Hamas's response.
Shortly after, Israeli media reported the country's political echelon had instructed the military to reduce offensive activity in Gaza.
Trump's plan and Hamas's reaction won support around the world, from Australia to India to Canada.
The Israeli military chief of staff instructed forces to advance readiness for the implementation of the first phase of Trump's plan, without mentioning whether there would be reduction of military activity in Gaza.
Hamas responded to Trump's 20-point plan after the US president gave the group until Sunday to accept or face grave consequences.
Trump has invested significant political capital in efforts to end a two-year-old war that has killed tens of thousands and left US ally Israel increasingly isolated on the world stage.
Trump said on Friday he believed Hamas had shown it was "ready for a lasting PEACE" and he put the onus on Netanyahu's government.
"Israel must immediately stop the bombing of Gaza, so that we can get the Hostages out safely and quickly!" Trump wrote on Truth Social.
Before Israel's latest announcements, families of those being held by Hamas in Gaza called on Netanyahu "to immediately order negotiations for the return of all hostages".
The prime minister is caught between growing pressure to end the war - from hostage families and a war-weary public - and demands from hardline members of his far-right coalition who insist there must be no let-up in Israel's campaign in Gaza.
Israel began its offensive in Gaza after the October 7, 2023, Hamas-led attack on Israel in which some 1200 people were killed and 251 taken as hostages back to Gaza, according to Israeli tallies.
Israel says 48 hostages remain, 20 of whom are alive.
Israel's campaign has killed more than 67,000 people in Gaza, most of them civilians, according to Gaza health authorities.