Ukraine's two reformist political parties have finalized a coalition deal that could clear the way for resolving months of political impasse.

Backers of President Victor Yushchenko and former Prime Minister Yulia Tymoshenko signed the agreement on forming the new government Thursday.

Ms. Tymoshenko said she believes the coalition can form an effective government and provide hope for "deep and systematic" reforms in the country.

The agreement stipulates that Ms. Tymoshenko will return as prime minster, while Mr. Yushchenko's Our Ukraine Party will choose the parliament speaker. The election of the speaker has been delayed until next week.

Ms. Tymoshenko served as prime minister after Mr. Yushchenko won the presidency in 2004, but he later fired her.

Some information for this report was provided by AFP and AP.