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A simultaneous reconstruction of the initial condition and the space-dependent reaction coefficient in a multidimensional hyperbolic partial differential equation with interior degeneracy is of concern. A temporal integral observation is utilized to achieve that purpose. The well-posedness, existence, and uniqueness of the inverse problem under consideration are discussed. The inverse problem can be reformulated as a least squares minimization and the Fréchet gradients are determined, using the adjoint and sensitivity problems. Finally, an iterative construction procedure is developed by employing the conjugate gradient algorithm while invoking the discrepancy principle as a stopping criterion. Some numerical experiments are given to ensure the performance of the reconstruction scheme in one and two dimensions. [ABSTRACT FROM AUTHOR]