Israel and Lebanon on Wednesday agreed to renew a shaky ceasefire and to create "pilot" security zones in southern Lebanon.
While a ceasefire was initially agreed in early April, Israel and Hezbollah have continued to trade fire.
Lebanon says over 3,300 people have been killed and more than 10,000 injured since the fighting between Israel and Hezbollah resumed in March.
Under the terms of the agreement, which was mediated by the United States, Hezbollah would withdraw from the security zones in southern Lebanon.
In a joint statement, Israel and Lebanon said the truce hinges on the "complete cessation of Hezbollah fire and the evacuation of all Hezbollah operatives" from south of the Litani River.
It was unclear how the security zones, which would be controlled by the Lebanese army, would be set up.
"These steps will enable progress towards a comprehensive peace and security agreement," the statement said.
Iran, which supports Hezbollah, has insisted that any peace deal to end the war with the US and Israel include the cessation of hostilities in Lebanon. Hezbollah has not been included in the talks between Israel and Lebanon.
"All countries reaffirmed that the future of the relationship between Israel and Lebanon must be decided by the two sovereign governments. They rejected any attempt, by any state or non-state actor, to hold Lebanon's future hostage," the statement said, referring to Iran and Hezbollah.
"Israel and Lebanon reaffirmed that they have no hostile intent toward one another and committed to continuing direct negotiations to build confidence, resolve all outstanding issues, and work toward a comprehensive agreement between the two countries," the statement added.
Israel and Lebanon will reconvene for more talks on June 22, the joint statement said.
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