The agreement yesterday, reached after 10 days of tense negotiations, will enable Malian troops to enter the Tuareg-held city of Kidal to secure the polls scheduled to take place on July 28.
The two sides agreed to halt hostilities and for Tuareg rebels, who took part in an uprising last year that brought the country to its knees, to be restricted to set areas. Long-term peace talks will start after the election.
Mali's Territorial Administration Minister Moussa Sinko Coulibaly signed the accord with representatives of two Tuareg movements in Ouagadougou, capital of neighbouring Burkina Faso.
There is a longstanding distrust between the government and ethnic Tuaregs, who launched an uprising with al-Qaeda linked militants last year. French forces intervened in January to halt an Islamist advance on the capital.
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"This agreement represents a major breakthrough in exiting the crisis in Mali," said French Foreign Minister Laurent Fabius.
"I call on the Malian parties, now reunited around a common project, to fully implement this agreement in the best interest of the country," he said.
UN leader Ban Ki-moon also "welcomed" the accord and urged the two sides "to begin implementation of the agreement at once." But UN envoy to Mali Bert Koenders said the deal was only "a first step."
Koenders said talks over "technical details" on security and setting up an administration and essential services in Kidal had not started.
"Once these conditions are met, it is at this point that an inclusive dialogue can be established, involving not only the government and armed groups, but also all Malians," added Koenders, head of the UN's Multidimensional Integrated Stabilisation Mission in Mali (MINUSMA).