In a video obtained exclusively by the BBC, the group said it took the decision several months ago "to put in motion a democratic process".
The Spanish government has previously said it will only negotiate with Eta if it renounces violence.
Eta's violent campaign for Basque independence has led to more than 820 deaths over the past 40 years.
It has called two ceasefires in the past, but abandoned them both.
It is unclear whether Eta is declaring a permanent or temporary ceasefire.
In the video obtained by the BBC, three hooded Eta fighters are shown sitting behind a desk with the Eta flag pinned up behind them.
The figure in the middle reads out a prepared statement defending Eta's campaign of violence, but towards the end she says the group now wants to achieve its aims by peaceful, democratic means.
The video comes as Eta has been under pressure, says the BBC's Sarah Rainsford in Madrid, with leading members of the group arrested, and growing calls from Basque political parties to declare a ceasefire.
There has been no reaction yet from the Spanish government.
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