Ms Rice praised the new Bosnian agreement as a 'historic step'
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Bosnia-Hercegovina's leaders have agreed constitutional reforms aimed at healing ethnic rifts and paving the way for eventual EU and Nato membership.
Bosnia's Muslim, Serb and Croatian leaders agreed the deal in Washington on the 10th anniversary of the Dayton accord, which ended war in the region.
US Secretary of State Condoleezza Rice praised the deal as a "historic step".
Bosnia's three-member presidency will be replaced by a single entity under the reforms, the US said.
Ms Rice said the three-headed government created under the Dayton accord had outlived its utility.
The 1995 Dayton agreement ended Bosnia's civil conflict by allowing the region's warring Serb, Croat and Muslim communities control over different areas of government.
The area was divided into a Muslim-Croat sector and a Serb one, while the presidency rotated between representatives of the three groups every eight months.
First step into EU
The Bosnian leaders meeting in Washington said they hoped to implement the constitutional reforms by March next year, at least six months before November's elections.
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Before and after images of the Bosnian war

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"Today, Bosnia-Herzegovina is joining the international community," Ms Rice said.
"We now have a tremendous opportunity to achieve real security and lasting democracy and true reconciliation in the Balkans," she said.
The move to create a single president follows efforts earlier this year to unify Bosnia's police and military forces, seen as an essential step on the road to EU and Nato entry.
EU foreign ministers agreed on Monday to begin talks with Bosnia on a stabilisation and association agreement - an early move towards membership.
War crimes
Bosnian Serb representatives at the Washington meeting also announced their support for efforts to arrest their former leaders wanted for wartime atrocities - Radovan Karadzic and Ratko Mladic.
Both men are fugitives, sought by the UN war crimes court in the Hague for allegedly leading a campaign of ethnic cleansing against non-Serbs.
Ms Rice said the arrest of Mr Karadzic and General Mladic is essential if Bosnia is to be admitted to Nato.
"America's position is clear and uncompromising: every Balkans country must arrest its indicted war criminals or it will have no future in Nato," she said.
Gen Mladic and Mr Karadzic are believed to be hiding among supporters in the Serb part of Bosnia or in Serbia-Montenegro.