Article published on the 2008-09-15 Latest update 2008-09-16 07:05 TU
South African President Thabo Mbeki, who brokered the agreement, said the government line-up was not yet finalised.
African Union Chairman and President of Tanzania Jakaya Kikwete described the accord as "the beginning of a new dawn".
The agreement breaks a month of deadlocked negotiations on a power-sharing government. Under the deal, Mugabe remains president and MDC leader Morgan Tsvangirai becomes Prime Minister.
President Mugabe said Monday he was committed to working with Morgan Tsvangirai in a new power-sharing government . In his first address as Prime Minister, Tsvangirai called on Zanu-PF and the MDC to work together to unite the country. Media reports say the president will remain in control of the armed forces, while the police and secret services will be the responsibility of the Prime Minister."There is power on both sides of the political divide and that's for the first time since the MDC came onto the political scene," correspondent Ryan Truscott told RFI.
Western countries including the United States and Britain have cautiously welcomed the accord.
European foreign ministers meeting in Brussels on Monday said the EU would wait for what they called "concrete" measures to restore democracy, before sending economic aid to the new unity government. The EU foreign ministers say they will reconsider the economic sanctions in place, at their meeting next month.
After a decade of political conflict, the country suffers the highest inflation rate in the world, severe foreign currency and food shortages, soaring unemployment and widespread hunger.