"Today we reached a fundamental agreement on holding early elections and on what needs to be done for these elections to take place honestly and democratically," Yushchenko told a news conference after the two men held talks at the president's secretariat.

No date was announced for elections, but the president indicated that a delay of at least two months is expected.

The vote could take place in "about 60 days, to be counted from the adoption of the decision in principle," he said.

Yanukovich later confirmed that a deal had been reached when he spoke to his supporters who have rallied on Kiev's Independence Square for weeks.

"There is no other way to solve this crisis except by holding democratic and fair elections," he said, adding that details needed to be worked out.

The prime minister said he and his allies favored "any concessions which will settle the crisis and keep it from deteriorating."

Political turmoil erupted in Ukraine in March when 11 lawmakers from pro-presidential factions defected to Yanukovich's ruling coalition.

Yushchenko called the defection illegal, saying the law permits only blocs, not individual lawmakers, to switch sides.

Last Saturday, Yushchenko said the country would hold early parliamentary elections with no conditions, so as to establish a constitutional and legal government.

The president originally issued an order on April 2 to dissolve parliament and hold early elections on May 27.

However, Yanukovich and his ruling coalition in the parliament defied the order and appealed to the country's Constitutional Court.

On April 25, Yushchenko announced a new decree that postpones the May 27 elections to June 24, which parliament voted against and condemned as an illegal announcement.

Ukraine's parliament passed a resolution on Monday to hold simultaneous parliamentary and presidential elections by Dec. 9 this year to end the country's political crisis.