Russian President Dmitry Medvedev has ordered an end to military operations against Georgia, the Kremlin says.
He told officials he had taken the decision to end the operation after restoring security for civilians and peacekeepers in South Ossetia.
However, Russia has been highly critical of Georgia's leadership, and there were no signs of imminent talks.
Before the announcement, there were fresh reports of Russian warplanes bombing the Georgian town of Gori.
Witnesses told the BBC that several people were killed when a bomb hit a hospital.
A reporter for the Reuters news agency said several bombs exploded in front of his vehicle, while a photographer for the agency spoke of seeing dead and injured people lying in the streets.
The BBC's Gabriel Gatehouse, near Gori, reported seeing sporadic artillery fire in and around the town, which is 10 miles (15km) from the South Ossetian capital, Tskhinvali.
The explosions continued until shortly before the announcement by the Russian president that military operations would end, he added.
Our correspondent said there was no sign of Russian troops south of Gori, but said there were a number of Georgian military vehicles abandoned or burnt on the road outside the town.