After months of political paralysis -- a breakthrough in Honduras.
Secretary of State Hillary Clinton says the current president and the ousted president have signed a deal.
A senior team of U.S. diplomats arrived in Honduras on Wednesday to help broker the agreement. They met with ousted President Manuel Zelaya at the Brazilian Embassy and interim President Roberto Micheletti.
The agreement appears to soften the stance that the Supreme Court, which already rejected Zelaya's reinstatement, decide the issue.
Instead, the court will make a recommendation, but the final decision would be left to a vote in Congress.
The new deal creates a power-sharing government and will require both sides to recognize the November 29 presidential election.
"Tonight I am pleased to announce that ... I authorized my negotiating team to sign a final accord that marks the beginning of the end to the political situation in the country," Micheletti said in a televised address.
Zelaya also praised the agreement, but it's unclear if he'll win a majority in the congressional vote.
"We are optimistic because Hondurans can reach agreements that are fulfilled," Zelaya told Radio Globo, an opposition station.
"This signifies my return to power in the coming days, and peace for Honduras," he said.