Hezbollah lawmaker Hassan Fadlallah said Wednesday the group was cooperating with the army's deployment across south Lebanon under the terms of a ceasefire with Israel, insisting "there will be no problem".

A ceasefire proposal agreed to by Lebanon and Israel stipulates that only "official military and security forces" in Lebanon are authorised to carry arms in the country, according to a copy of the deal dated on Tuesday and seen by Reuters on Wednesday.

Prime Minister Benjamin Netanyahu is urging Israel's security Cabinet to approve a ceasefire with Hezbollah, paving the way for a possible pause in over a year of fighting with the Iran-backed group.