It's a nice gesture of them to offer to pay, but I would agree to something like that if it doesn't come with any "strings" or conditions. I've heard some stories where the people who offer to pay often may want to have say on who gets invited or what kind of stuff it entails (decor, food, etc). Depends on your relationship with them and if you agree with all of that.
In my culture it's more common for the couple to pay for everything, so I'm unsure of what's normal for you.