The two principal figures in Ukraine's deepening political crisis have agreed on a date for parliamentary elections, in a compromise which ends weeks of tense confrontation.

President Viktor Yushchenko and Prime Minister Viktor Yanukovich talked long into the night.

The President declared: "I want to say on this great day, we have great news. We can now say that the political crisis in Ukraine is over. We have reached an agreement that the basis for resolving the crisis is to hold early parliamentary elections on September 30th".

The rivals had been at odds since the President dissolved parliament last month and announced snap elections.

Yushchenko wanted them earlier, Yanukovich later.

When forces loyal to each man began posturing in recent days, analysts feared the power struggle could collapse into violence.

The Prime Minister said: "We also signed in our political declaration that we will not interfere with the work of the judiciary nor law-enforcement agencies, and we will ensure they are stable."

Both men said the prolonged stand-off had eventually been good for Ukraine, having learned lessons, and emerged much stronger.

Yushchenko said the country was demonstrating the development of its democracy, and called the outcome a truly wonderful result.

PHOTO CAPTION

President of Ukraine Viktor Yushchenko (L) gestures as he speaks while Prime Minister Viktor Yanukovich listens during their press-conference for the results of their talks in Kiev early 27 May 2007. (AFP)