The rebels are willing to disarm if the government stays out of the north
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The government of Ivory Coast and the rebels have agreed to start disarming in mid-December.
The two sides on Friday will begin pulling back from a ceasefire line patrolled by foreign peacekeepers, a joint statement said on Thursday.
The statement issued after talks in the political capital, Yamoussoukro, said disarmament would begin on 15 December.
President Laurent Gbagbo announced he would soon go to the rebel stronghold of Bouake to declare the war over.
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The whole of the Ivory Coast and the world will know that Ivory Coast is determined to go towards peace
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Ivory Coast has been divided between the government-run south from the rebel-held north since northerners - who are mostly Muslims - launched a rebellion in September 2002.
About 5,500 French and West African peacekeepers have patrolled the buffer zone between the north and the south since July.
Tensions flared up again after the rebels left a unity government in September, accusing President Gbagbo of not honouring a French-brokered peace agreement.
Sticking points
There was violence at the weekend, when hardline supporters of President Gbagbo backed by soldiers tried to march on Bouake to resume the war, and were dispersed by French troops.
After Thursday's meeting, President Gbagbo called for the complete implementation of the settlement.
"The peace pact reached and signed in France must be applied in full," he said.
"I will announce the official end of the war in coming days from Bouake so that the whole of the Ivory Coast and the world will know that Ivory Coast is determined to go towards peace."
However, journalist Emmanuel Goujon in Yamoussoukro told the BBC that many sticking points remain, and it is unclear whether both sides are determined to implement the peace deal.
The two sides are due to hold further talks on 10 and 12 December to work out disarmament details.
They also agreed to start releasing prisoners
from Friday.
Protests
General Ract Madoux - second in command of the French troops
in Ivory Coast - said the French force had played a major role in
reaching the Yamoussoukro agreement.
Gbagbo's hard-line supporters resent French troops
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"We prepared most of the announcements that were made this
evening," he said. "Our first reaction is one of satisfaction."
The rebels have not yet commented.
They had previously refused to disarm unless the army does the same.
Rebel leader Guillaume Soro has accused Mr Gbagbo of orchestrating the recent unrest to discredit the peace plan, which set up a power-sharing government.
In Abidjan pro-Gbagbo youths agreed to end a four-day sit-in outside the main French military base.
The youths have long accused French peacekeepers of protecting the rebels.