A truce agreement between Thailand and Cambodia came into effect at midnight on Monday, hours after they agreed to halt their deadliest conflict in more than a decade following five days of intense fighting that displaced over 300,000 people.

After efforts by Malaysia, chair of the ASEAN regional bloc, China and the United States to bring both sides to the table, the two countries' leaders agreed during talks in Putrajaya to end hostilities, resume direct communications and create a mechanism to implement the ceasefire.

"This is a vital first step towards de-escalation and the restoration of peace and security," Malaysian Prime Minister Anwar Ibrahim earlier told a press conference, flanked by the Thai and Cambodian leaders, following more than two hours of talks at his residence in Putrajaya, Malaysia.

At least 38 people, mostly civilians, have been killed in clashes in multiple locations along their 800 kilometer border since fighting between the two Southeast Asian neighbors erupted on July 24.

There were no official reports of unrest from either side in the hours leading up to the ceasefire taking effect.

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(With input from Reuters)