Kosovo's President Atifete Jahjaga says the country's prime minister and main opposition leader have pledged to form a coalition government, ending five months of political fighting plagued by accusations of government corruption.

Jahjaga said in statement late Wednesday that premier Hashim Thaci's Democratic Party and Isa Mustafa's Democratic League will try to overcome a political stalemate that has threatened to send the country into bankruptcy as its lawmakers have been unable to vote on the budget.

The deal is likely to upset other opposition parties that sided with Mustafa in a bid to oust Thaci from governing the country, following allegations of high level corruption and an international investigation into organ trafficking.

Thaci led Kosovo's ethnic Albanian guerrillas during the 1998-99 separatist war against Serbia.

Serbia rejects Kosovo's 2008 secession.