The deal was struck during a second day of talks in Germany and is now being discussed at the UN Security Council.

The German Foreign Minister, Joschka Fischer, said: "We have managed to unite on an agreement. We have managed to achieve a real breakthrough."

Mr Fischer told a news conference that the deal would lead to a halt in bombing and a "robust peace group" would be put in place.

There has been no reaction yet from Yugoslavia.

The draft resolution says the international force for Kosovo will have a unified command structure and it calls on all parties to co-operate with the war crimes tribunal that has indicted Yugoslav President Slobodan Milosevic - key Nato demands.

The BBC's Brian Hanrahan: "Their unity is a lever that will force Milosevic to give way"

But even as the G8 foreign ministers were putting on a united front differences were appearing.

When asked who would lead the international presence in Kosovo US Secretary of State Madeleine Albright said Nato was both at the core of the force and its military leader.

Russia's Foreign Minister, Igor Ivanov, said that was still the subject of negotiation.

But BBC Diplomatic Correspondent William Horsley said it was clear Nato had won the diplomatic battle "strongly and completely" and that Russia had agreed to Nato's terms.

The draft UN resolution allows Serbia to maintain a presence on its Kosovo borders, but not to have any influence over who is allowed to enter the province.

At the White House, President Bill Clinton said: "The key now is implementation. A verifiable withdrawal of Serb forces will allow us to suspend the bombing and go forward."

When the talks reconvened in Germany, the Russian President, Boris Yeltsin, denounced Nato "aggression" against Yugoslavia, which he said "seriously complicated the international climate."

The BBC's John Simpson: "All this to force an agreement which Milosevic could of had in March"

But Defence Minister Igor Sergeyev said Russia was preparing to send up to 10,000 troops into Kosovo. He added that they would not be under Nato command.

Elsewhere, the EU's Balkans envoy, Martti Ahtisaari, has briefed Chinese leaders in Beijing, where he is hoping to secure vital Chinese support for the planned UN resolution.

And President Yeltsin is reported to have discussed the deal by phone first with his Chinese counterpart Jiang Zemin, and then President Clinton.

KLA truce promised

Hashim Thaci, the political leader of the Kosovo Liberation Army, says the rebel group is ready to publicly pledge that it will not attack Serb troops leaving the province.

Yugoslav Deputy Foreign Minister Nebojsa Vujovic said Belgrade officials should be allowed to check who is entering Kosovo under the terms of the peace deal.

He said: "The Serbian border crossing people and customs officials should stay to see there are only refugees coming back, not the people from Albania proper including those separatists and terrorists."

The agreed draft text allows for a Serb border presence but not to decide who will be allowed to enter Kosovo.

Border fighting

Fighting has continued on the Kosovo Albanian border with Reuters news agency reporting artillery shells landing about 25km into Albanian territory.

A spokesman for the Organisation for Security and Cooperation in Europe said it was the first time shells had landed so deep inside Albania.

Nato air attacks have gathered pace again following a lull in the days after President Slobodan Milosevic first signalled his intention to agree to a peace deal.

(Click here to see a map of last night's Nato strikes)

On Monday more than 660 sorties were flown by Nato, General Sir Charles Guthrie said at a British Ministry of Defence briefing.

Huge palls of smoke and flames rose from Serbian oil refineries early on Tuesday after they were attacked, and explosions were heard in central Belgrade for the first time in several days.

Serbian local radio said the huge oil refinery at Pancevo near Belgrade was bombed. Residents in the centre of the capital heard intense anti-aircraft fire and several explosions.

Two missiles hit civilian houses in Belgrade suburbs without exploding or without causing casualties, the official Yugoslav news agency Tanjug said.

Yugoslav media also reported that fires raged at a major refinery in the northern city of Novi Sad after it was bombed around midnight, killing one civilian and wounding five.

• Main points of the draft resolution
• KLA 'ready to guarantee Serb safety'
• Hiding in the hills
• Russia and China 'discuss Kosovo peace'
• Blair: Nato could enter Kosovo in days