A ceasefire has been announced after at least 30 soldiers were killed in clashes between Azerbaijani and Armenian forces over the disputed Nagorny Karabakh region.
News agency AFP reported that Azerbaijan announced the "unilateral" ceasefire in Karabakh on Sunday morning.
The country's defence ministry said: "Azerbaijan, showing good will, has decided to unilaterally cease hostilities."
It added, however, that it would "liberate all (Armenian) occupied territories" if Armenian forces "do not stop provocations".
Armenian President Serzh Sarkisian had earlier described the bloodshed as the "largest-scale hostilities" since a 1994 truce ended a war in which Armenian-backed fighters seized the territory from Azerbaijan.
He said 18 Armenian troops were killed and some 35 wounded in the fighting.
Azerbaijan said 12 of its soldiers were killed and one of its military helicopters was shot down.
Moscow and Western leaders had been among those calling for the ceasefire.
Russian President Vladimir Putin had called on the two former Soviet states to "exercise restraint in order to prevent further casualties", Kremlin spokesman Dmitry Peskov said.
European Union foreign policy chief Federica Mogherini said the reports of heavy fighting were "deeply worrying".
Armenia accused Azerbaijan of launching a "massive attack along the Karabakh frontline using tanks, artillery, and helicopters" on Friday night.
Azerbaijan, however, said it defended itself after coming under fire from "large-calibre artillery and grenade-launchers".
Armenian separatists, backed by the capital Yerevan, seized control of the mountainous Nagorny Karabakh region in the early 1990s war that killed 30,000 people.
The two nations have never signed a peace deal despite the 1994 ceasefire and the region is still internationally recognised as part of Azerbaijan.
Moscow has supplied weapons to both sides, but is much closer to Armenia.
Energy-rich Azerbaijan had repeatedly threatened to take back the breakaway region by force if negotiations fail to yield results but Armenia had promised it could crush any offensive.
The last flare-up took place in November 2014 when Azerbaijan shot down an Armenian military helicopter.
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