India's ruling Bharatiya Janata Party says it will be part of a coalition government in Kashmir, the first time the Hindu nationalist party will share a leadership position in the predominantly Muslim region.

The BJP and the regional Peoples' Democratic Party finalized an agreement to form the coalition government at a meeting in New Delhi on Tuesday after two months of negotiations.

BJP President Amit Shah said the two parties have resolved most of their differences and agreed on a common program that will be announced in the next few days when Prime Minister Narendra Modi meets regional leaders.

No party won a clear majority in elections in December for Kashmir's 87-seat assembly. The BJP won 25 seats while the PDP received 28 seats.