ADDIS ABABA (Reuters) - Madagascar's political rivals struck a deal late Friday on the make–up of a unity government, paving the way for an end to a 10-month political crisis that has rocked the Indian Ocean island. The agreement sees coup-instigator Andry Rajoelina remain president, accompanied by two new co-presidents after former leader Marc Ravalomanana refused any accord which saw his successor retain sole leadership of the oil and mineral-endowed country.

''There will be two co-presidents as well as the president. That has been decided and accepted by leaders of the four movements, and by the president of the transition, too,'' Rajoelina told reporters shortly before midnight in Ethiopia's capital Addis Ababa.

Tiebile Drame, the UN special envoy to Madagascar, confirmed the agreement and said the parties were now working on dividing up ministerial portfolios. The deal will allow both Rajoelina, who seized power with military backing in March to become Africa's youngest leader, and Ravalomanana to claim victory.

Rajoelina, 35, has struggled to win backing from the international community after regional blocs suspended Madagascar and major donors blocked aid. Ravalomanana, who is exiled in South Africa and had become increasingly isolated from Madagascar's political arena, will now install a close ally at the highest political level.

While Rajoelina remains head of state, it was not immediately clear how executive power would be divided between the president and the twin-headed, so-called presidential council. But a source close to the negotiations said all future decisions would have to be signed three-ways ahead of new elections to be held by late 2010.

Self-made millionaire Ravalomanana has agreed to play no direct role in the interim government under the terms of an initial power-sharing deal signed in Mozambique's capital in August.