Pakistan’s Geo TV, quoting security officials, reported the exchange of fire between the two sides had stopped Monday.
“This is a good thing that the militants have agreed to the cease-fire and we welcome it,'' Arshad Majeed, district coordination officer for Swat told the TV channel by telephone.
The area has come increasingly under the control of militants led by Maulana Fazlullah, a fiery pro-Taliban cleric.
The fighting began last week after Pakistan dispatched more than 2,000 paramilitary troops to retake the valley from Fazlullah, who through his radio broadcasts urged followers to attack the troops.
Several soldiers were killed last week and some of the captive Pakistani security forces were beheaded by the militants. In retaliation, the military launched a major attack backed by helicopter gunships.