The handshake that could give Zimbabwe hope: Mugabe and Tsvangerai agree to peace talks

In their first meeting in a decade they agreed to hold talks on forming a powersharing government.

The political adversaries shook hands then sat at a conference table separated by South African president Thabo Mbeki who mediated the deal.

The preliminary agreement was signed after weeks of deadlock since Mugabe was reelected on June 27 in a widely condemned poll boycotted by Mr Tsvangirai because of violence against his supporters.

Deal breaker: Robert Mugabe shakes hands with Morgan Tsvangirai yesterday in Harare

Mbeki said the agreement committed both sides to an intense process to try to complete substantive negotiations as quickly as possible.

'All parties recognise the urgency,' he said. A subdued Mugabe said after the signing that the agreement was 'to chart a new way of political interaction'.

Mr Tsvangirai called the ceremony 'historic' and stressed that a solution must be found. 'If we put our heads together, I am sure we can find a solution. In fact, not finding a solution is not an option,' he said.

Officials from both sides said the framework agreement sets a two-week deadline for the government and two factions of the opposition Movement for Democratic Change to discuss key issues including a power-sharing unity government and how to hold new elections.

Peace talks: South Africa's President Thabo Mbeki addresses the media as Mugabe, left, and Tsvangirai listen

Hands across the divide: Mugabe, centre, with MDC leader Tsvangirai and Arthur Mutambara, leader of another faction of the opposition

A government of national unity has been pushed as a solution to the crisis by the African Union and the Southern African Development Community, both deeply concerned by political violence and the economic chaos that has flooded neighbouring states with refugees.

Mr Tsvangirai's MDC and Mugabe's ZANU-PF are also committed under the agreement to ease political tension.

One analyst said there were still wide differences between the two groups.

'This represents a small step in terms of the overall picture of moving towards negotiations,' said Mike Davies, an analyst at Eurasia Group.

'We would still see that there are wide differences between the positions of the MDC and ZANU-PF that will have to be overcome if there is to be any negotiated solution to the crisis.;

Mugabe, 84, and Mr Tsvangirai have been under heavy world and African pressure to enter negotiations, which are expected to be extremely tough. 

Power struggle: Mr Mbeki meets the Zimbabwe Defence Force Chiefs of staff after he arrived at Harare International Airport

They have both demanded to be recognised as Zimbabwe's rightful president.

Mugabe called for an end to Western sanctions against him and his ruling circle and said there was no need for intervention from Europe in Zimbabwe.

He has frequently called Mr Tsvangirai a puppet of Britain. Mr Tsvangirai had refused to sign even a framework deal unless government militias stop the violence that has killed 120 supporters.

He also wanted Mugabe to recognise his victory in the first round of the presidential poll on March 29. The MDC leader pulled out of the run-off because of violence.

The turning point in ending the deadlock appeared to be a meeting on Friday between Mr Mbeki, the African Union's top permanent official, Jean Ping, and UN envoy Haile Menkerios.

Mr Mbeki, who has up to now negotiated alone as the designated regional mediator, agreed to expand the mediation process to include the African Union, United Nations and officials from the Southern African Development Community.