According to Prison service spokeswoman Nicole Englander, a compromise was reached, including a provision allowing for a second family visit per month, the Independent reported.
Some 1,187 detainees observed the strike, according to Israel's prison service.
Israel has more than 6,000 Palestinians now in prison; more than 500 haven't had a trial.
"We have explained in detail to American envoy Jason Greenblatt the issue of the prisoner strike and we have called for American intervention to ensure that the rights of prisoners are protected and their humanitarian demands are granted", he said. Israel says that measure is necessary to prevent attacks and protect security sources. It took 20 hours of intense discussions to convince the prisoners to end their strike.
The restoration of the bi-monthly visits, a system that worked until a year ago, was one of the demands of the strikers, who also called for the end of solitary confinement, torture, medical negligence and administrative detention, as well as access to education and medical care.
Palestinians hoped the protest would draw the attention of a seemingly distracted global community as the Israeli occupation hits the 50-year mark in early June.
Barghouti is seen as a possible future successor to the Palestinian leadership.
Palestinian president Mahmud Abbas had urged USA counterpart Donald Trump to raise the issue with Israeli Prime Minister Benjamin Netanyahu during his visit to the region earlier this week.
Marwan Barghouti, who led the collective hunger strike that began on April 17, is an elected member of Parliament and a member of President Mahmoud Abbas's Fatah party's Central Committee.
He said the agreement was reached at 4 a.m. coinciding with start of the first day of Ramadan, the Muslim holy month where the devout pray intensely, observe dawn-to-dusk fasting and enjoy nightly feasts.
Some 740 Palestinians are held in administrative detention, Qaraqe said.
Earlier this month, Israel released footage it said shows Barghouti breaking his fast.
A number of activities in the Palestinian terriritories were held in support of the prisoners, such as popular rallies and general strikes.