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Last Updated: Thursday, 29 November 2007, 13:41 GMT
Orange coalition to lead Ukraine
Ukrainian President Viktor Yushchenko (left) embraces Yulia Tymoshenko on 15 October
The last "Orange" government fell apart after seven months
Ukraine's pro-Western "Orange" parties have agreed after months of uncertainty to form a coalition - the first step towards a new government.

The coalition of parties led by Viktor Yushchenko and Yulia Tymoshenko - both leaders of the 2004 Orange Revolution - has a majority of just one seat.

Ms Tymoshenko is expected to become prime minister in the new government.

Elections in September gave the two parties enough combined votes to defeat current PM Viktor Yanukovych's party.

His Party of Regions, which has its base in Ukraine's Russian-speaking east, won the largest single share of votes in the election but is now expected to be the main opposition group.

Orange feud

The two Orange bloc parties reached a loose agreement in October to form a coalition.

But disagreements remained over which government posts each party would control.

Thursday's deal makes it likely that Ms Tymoshenko will again become prime minister - an office she occupied briefly in 2005 before being sacked by the then president, Viktor Yushchenko.

Mr Yushchenko's party is expected to have the right to choose the parliamentary speaker - a powerful office in Ukraine.

Wrangling between the erstwhile allies, Ms Tymoshenko and Mr Yushchenko, has recently dominated Ukrainian politics.

Mr Yushchenko became president after street protests in 2004, dubbed the "Orange Revolution". He defeated his bitter rival, Mr Yanukovych, whose election had been widely condemned as fraudulent.

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