The government decision comes after both the U.N. and the U.S. urged a halt to the fighting to allow food supplies and medical aid to reach the tens of thousands of civilians that have fled their homes.
Rebels responded cautiously to the offer, which comes right before the Eid al-Fitr holiday ending the fasting month of Ramadan, and told the Associated Press they would monitor the situation on the ground first.
On Wednesday government jets bombed a makeshift camp packed with displaced people near the front-line town of Harf Sufyan, witnesses put the death toll at 87, most of them women and children.
U.N. Secretary General Ban Ki-moon called for an investigation and the U.S. embassy in San'a expressed concern over the strikes Friday. Both also urged an end to the fighting, echoing earlier calls by aid agencies.
The government said the cease-fire was in response to the international calls and the approaching holiday. This is second cease-fire in two weeks, the last one fell apart in a matter of hours.
"The government will cease military operations in the north western regions from this point forward," said the statement.
The government has set down five conditions for the end of hostilities, including removing road blocks, withdrawal of rebel forces, release of detained military personnel and property, and abiding by the constitution and law.
The rebels, however, have insisted on an unconditional cease-fire.
"We welcome the cease-fire offer, we have been seeking an unconditional cease-fire deal for a long time. As for the terms, they should be discussed in a dialogue at a negotiating table," said rebel spokesman Mohammed Abdel-Salam.
The Shiite tribesmen, led by Abdel-Malek al-Hawthi, have so far refused to hand over their weapons or release any war prisoners. They accuse the government of not fulfilling its obligations under previous agreements, including freeing rebel detainees, paying compensation to victims and rebuilding villages ravaged by fighting.