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Mauritanian parties agree a new election date after Senegal's president, Abdoulaye Wade steps in to mediate.
International bodies and Mauritanian politicians welcomed the military junta's decision to delay presidential elections and form an interim administration as a way out of a political stalemate.
The formation of a transitional government, and wider participation in the rescheduled poll are the first steps towards a return from international isolation since presidential guard General Mohamed Ould Abdel Aziz overthrew the country's first freely elected leader last August.
Opposition parties in Mauritania rejected the June 6 poll on the basis that the military junta had imposed its timetable without consultation, and diplomats and analysts said largely uncontested elections may not have amounted to the return to constitutional rule demanded by the international community.
Under an agreement reached in Dakar, the capital of neighbouring Senegal, a transitional government will be formed with 26 ministerial posts to be will be shared equally between junta nominees and opposition politicians. That will be the first step in the process which will lead to a presidential vote.
The agreement specifies that members of the anti-putsch coalition will lead the ministries of the Interior, Communications, Finance and occupy the position of general secretary of the presidency. Abdel Aziz's allies will be able to propose a prime minister.
The agreement was signed under the auspices of Senegalese President Abdoulaye Wade, who congratulated Mauritanian political leaders for demonstrating their intent to assure the rapid return to constitutional order.
"You were in a situation where the army took power, it is what we call a coup. Thanks to the power of dialogue, we have been able to restore order, and this was possible thanks to president Sidi's resignation," said Wade.
The new administration will guide the northwest African country to elections on July 18, with a second round on August 1 if required.
"Mauritanian people want elections to take place in a peaceful atmosphere, that they should be transparent and fair and as a result, based on this, we have come to a consensus. The only judge in this country should be the Mauritanian people," said Mustapha Ould Abeiderahmane, a political leader.
Major opposition parties had boycotted the original election, which was due to held on June 6, though some fringe figures as well as Abdel Aziz have been campaigning since late May.
"You can't completely satisfy everyone, everyone made a lot of compromise, but they did this in the interest of Mauritania, and in order for this agreement to serve Mauritania. Each party has to respect it without fault," said Mohamed Ould Maouloud, leader of the anti-junta coalition.
Under the agreement, the African Union, United Nations, European Union and other international bodies said they are ready to assist with the July 18 vote. The international community has widely criticised Abdel Aziz's seizure of power. The African Union imposed sanctions in February, while the EU said in April it could not work with a military government, and would suspend aid for two years.
Cheikh Tidiane Gadio, Senegal's foreign minister and chief mediator, stressed that the international community would continue to assist Mauritania, as the [poll date approaches.
"We are available and ready to help out our friends in Mauritania. We will be there and we will continue our obligations and this peace process, and we are even more optimistic today than yesterday. We are convinced that we are on a good path," said Gadio.
Prior to the agreement, opposition parties had said they would boycott the election, a move diplomats said would have damaging consequences for the international legitimacy of the winner.
Although there have not yet been any confirmations, early indications are that the parties will now stand.