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One of the most popular Ethiopian vocalists of the late 20th century, he rose to fame at a time of great political unrest in Ethiopia.
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Both parties have agreed to protect civilians and facilitate the delivery of humanitarian aid to the region of more than 5 million people, according to a copy of the agreement seen by the AP.
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The Ethiopian federal government and Tigray rebels signed a peace deal. But one major player in the conflict, Eritrea, wasn't involved in the talks.
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The truce could halt the 2-year-long civil war in the country that has killed thousands and created widespread famine.
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The conflict in Ethiopia's northern region of Tigray has left millions in need of humanitarian assistance.
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"As prime minister and winner of the Nobel Peace Prize, Abiy Ahmed has a special responsibility to end the conflict and contribute to peace," the Oslo-based committee said in a statement.
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A newly formed rebel alliance led by the Tigray People's Liberation Front is within striking distance of Addis Ababa. A failed state could displace millions of people and stoke more ethnic violence.
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An investigation released a year after the start of violence over the breakaway region of Ethiopia has compiled evidence of summary executions, torture and rape.
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Thousands of people have been killed in the 9-month-old civil war in Ethiopia. The U.S. accused an Eritrean leader of overseeing massacres, widespread sexual assault, and the executions of boys.
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The conflict, which began last year, in the Ethiopian province of Tigray is spreading into other parts of Africa's second-most populous country.