After 17 hours of negotiations in the four-way summit in Minsk, Belarus, leaders of Russia, Ukraine, Germany, and France agreed to a ceasefire.
Still, questions remain of whether the two sides have agreed on the terms of the peace deal.
Russian President Vladimir Putin said they agreed to the ceasefire, which begins at midnight Saturday, and a division line for withdrawing heavy weapons.
Putin also said agreements had been signed: one declaring the ceasefire and the other implementing it.
"It was not the best night of my life, but it has been a good morning because we have managed to reach a major agreement," Putin said. "Anyway, we had to deal with the circumstances we had and we have been able to agree on a lot of things. The first thing is a ceasefire starting at midnight on 15 February."
Previous attempts at peace failed to stop the fighting.
The U.S. State Department said Wednesday that a ceasefire in the region would be the first step in any peace agreement, though it questioned Russia's commitment to the diplomatic effort.
Despite the ongoing talks, both rebels and government troops reported fighting across eastern Ukraine.
At least 5,300 people have died since last April in the fighting between Ukrainian forces and Russia-backed separatists in the regions of Donetsk and Luhansk.
The peace talks came as President Barack Obama warned Putin that the costs for Russia will rise if its aggression doesn't stop.
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