Cambodia's two major parties,the Cambodian People's Party (CPP) and the royalist FUNCINPEC party, on Wednesday formally signed the cooperation agreement to form a new coalition government.

The signing ceremony was held at the Senate attended by hundreds of senior leaders of the two parties, as well as many diplomats.

"The two parties agree to form a coalition government in accordance with the will of the king of Cambodia," the agreement said.

The agreement will virtually ensure that CPP's Vice-President Hun Sen will remain prime minister and Prince Norodom Ranariddh, president of the royalist FUNCINPEC, will remain president of the National Assembly.

And CPP's President Chea Sim will continue to take the president of the Senate.

Today's signing event will mark the end of 11 months wrangling and bargaining on power-sharing and political platform between the two parties.

"This event is the most important thing for our country,"FUNCINPEC's President Prince Norodom Ranariddh, told reporters after the signing ceremony on Wednesday.

"We hope that if the new government can be formed in mid-July or late July, the king will probably return to Cambodia," Prime Minister Hun Sen told reporters Wednesday.

"I agree with the Prime Minister to form the new government before the end of July," the Prince added.

The National Assembly is expected to convene on July 8 and approve the package-vote about the posts of prime minister and president of the National Assembly, and finally it will be sent to King Norodom Sihanouk for approval.

Source: Xinhua