Two Turkish Cypriot parties on Sunday agreed to form a coalition government with a pledge to work towards a deal reuniting the divided Mediterranean island before Cyprus joins the European Union on May 1.
The accord will be welcomed in Turkey, the only country to recognise the self-declared northern Cypriot republic.
Turkey is also keen to resolve the Cyprus problem by then in order to smooth its own path towards EU membership.
Mehmet Ali Talat, head of a party that backs the UN peace plan for Cyprus, said he had sealed a two-party coalition accord with Serdar Denktash, a critic of the UN blueprint.
"Our government is for social reconciliation and a solution (of the Cyprus problem)...We aim for a solution by May 1," Talat said at a joint news conference.
The Greek Cypriot government, which is recognised internationally but controls only the southern part of the island, will enter the EU then, whether an agreement is reached or not.
Last month's election left the parliament of northern Cyprus evenly balanced between supporters and opponents of the UN plan to reunite Cyprus after three decades of ethnic division.
Denktash, head of the Democratic Party and son of Turkish Cypriot president Rauf Denktash, said he hoped the government would be successful in working towards a "lasting solution".
Talat's Republican Turkish Party won the most seats in December's polls but fell short of a majority. Together with the Democratic Party they have 26 seats in the 50-member assembly.
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