Israel says it has received a message from Lebanese militant group Hezbollah saying it does not want a further escalation after border clashes on Wednesday that killed three people.
Defence Minister Moshe Yaalon said the message was passed by the UN mission, but Israeli troops remained "prepared".
The two Israeli soldiers killed in the exchange were buried on Thursday. A Spanish UN peacekeeper was also killed.
Hezbollah and Israel fought a deadly war in 2006, which ended in stalemate.
That conflict lasted a month and caused death, destruction and disruption on both sides of the border.
The feeling now is that neither Hezbollah nor Israel has much interest in an escalation to that point, says the BBC's Jim Muir in Beirut.
Hezbollah is already heavily embroiled in the war in Syria, while Israel's leaders face general elections in March.
They could benefit if a robust response was seen to punish Hezbollah without repercussions, but a disruptive war could backfire at the polls, our correspondent adds.
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