
A key element calls for all forces to return to the areas where they were before fighting broke out last week.
EU foreign ministers in Brussels are discussing the plan at an emergency meeting on the crisis.
Some 100,000 people are estimated to have been displaced by the conflict, which has created huge tensions in international relations.
On Tuesday, Russia announced its military activity in the area was completed and witnesses saw troops pulling out.
The BBC's Gabriel Gatehouse in Georgia says fighting in the South Ossetia region does now seem to have ended.
But despite the diplomacy and apparent withdrawal, rhetoric on both sides remained fiery and analysts were predicting a long road to peace.
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