The African Union (AU) said yesterday it would not re-admit Madagascar until a newly agreed power-sharing government was in place and fresh elections in the pipeline.

Earlier, the island's rivals signed a deal under which coup-instigator Andry Rajoelina would remain president, accompanied by two new co-presidents. Deposed leader Marc Ravalomanana had rejected any accord which would have seen his successor retain sole leadership of the oil and mineral-endowed country.

"The sanction against Madagascar is not yet lifted. First the transition's institutions must be set up and functioning and there is a clear roadmap towards elections," Ramtane Lamara, president of the AU's Peace and Security Council told reporters.

Negotiations on who takes which of the 31 cabinet posts could cause conflict, as could how power is shared and exercised. Political turmoil has rocked the Indian Ocean Island since Rajoelina, 35, unseated Ravalomanana with military support in March, drawing widespread condemnation from African nations and foreign powers. The AU also suspended Madagascar in March.

International mediators have brokered earlier deals with Madagascar's leaders, only for personal interests and political ambitions to stymie their implementation. France, which has kept close political and business ties with Madagascar since its independence in 1960, welcomed the breakthrough and urged the nation's leaders to forge ahead with national interest at the fore. – Reuters