PRISTINA, Nov. 20 -- Two biggest political parties in Kosovo reached late Wednesday a principal agreement to form government and end five months deadlock following early general elections in June.

The agreement between Kosovo Democratic Party (PDK) of outgoing Prime Minister Hashim Thaqi and Democratic League of Kosovo (LDK) was reached in a meeting facilitated by "President" of Kosovo Atifete Jahjaga, and in the presence of U.S. Ambassador to Kosovo Tracey Ann Jacobson.

"Thaci and Mustafa (LDK leader) agreed in principle to form a coalition between PDK and LDK, to build institutions," Jahjaga said in a statement. According to her the meeting occurred in the request of both respective leaders.

"Both political leaders stressed their commitment for concluding quickly the process of forming institutions in accordance with the Constitution, the decisions of the Constitutional Court and constitutional principles which preserve multi-ethnic character of Kosovo," said Jahjaga.

PDK won early June elections by gaining 37 out of 120 seats in the Kosovo Assembly, but significantly short of the needed 61 seats to form government.

LDK, which has 30 seats initially in June reached an agreement with other minor Albanian political parties to form government, but did not succeed as the Constitutional Court sanctioned that only the winning party (PDK) is eligible to nominate the speaker of the Assembly. It effectively diminished the opposition block's hopes to elect the speaker and form government.

In a press statement, LDK announced that it would take the post of "prime minister" and that the Ministries will be divided almost equally with PDK.

"Based on the agreement, the position of the "prime minister" will belong to the LDK. Division of the ministries will be decided over the coming days," said LDK.