According to Reuters, the details regarding the agreement are expected to be revealed during a press conference this afternoon in Cairo, where the talks between the two rival Palestinian factions took place.
The two sides remain sharply at odds, however, over the future of Hamas's 25,000-strong armed wing, which the terror group says is nonnegotiable.
A statement from Netanyahu's office said that Israel "will examine developments in the field and act accordingly".
Fatah official said the Palestinian president is planning to visit Gaza Strip within a month as part of the unity bid in what would be his first visit in a decade.
While details about the deal are still scarce, it appears that Fatah - the ruling party in the West Bank - will have more control over Gaza, run by Hamas since the split.
The agreement, which is a reactivation of a previous deal signed in 2011, was signed in the presence of Egyptian Intelligence Minister Khalid Fawzi.
"We must close the page of division forever to unite the efforts of the Palestinian people with all its forces, specially Fatah and Hamas, so that we can confront the occupation in order to realize the Palestinian dream of ending the occupation and establishing our sovereign state with Jerusalem as its capital", he said. Hamas and Israel fought three devastating wars over the past decade. Hamas and Fatah organisations began negotiations on reconciliation last Tuesday through Egypt.
Since then, the relations between the two rival factions have been very tense and all attempts to reconcile them over the past years have failed to bring fruit. Israel and Egypt imposed a blockade on the territory, severely restricting Palestinians from leaving the territory and goods from entering.
One of the key sticking points will be the fate of Hamas's 25,000-strong military wing, the Ezzedine al-Qassam Brigades.
"According security measures will be applied and adopted by the Palestinian Authority where the presidential guards will be spread all over the borders", said al-Ahmad.