However, ethnic Serbs in Kosovo's north refused to accept a key part of the deal and end a blockade of main roads imposed in a dispute that is essentially about who controls the area.

Belgrade chief negotiator for dialogue with Pristina Borislav Stefanovic called on local Serbs to accept the deal which KFOR made with representatives of the governments of Serbia and Kosovo.

He said that the agreement, which will be in force until 15 September, was not ideal but called on them to respect it nevertheless, adding that otherwise there would be no further negotiations with representatives of the international community.

Violence flared last week after Kosovo attempted to seize border posts that had been staffed mostly by ethnic Serbs to enforce a new ban on imports from Serbia.

Friday's agreement was an effort to ease tensions after a Kosovo policeman was shot dead last week and a border post set on fire.

Under the deal, NATO's KFOR mission will continue to guard two border posts and will let civilians pass in and out of Kosovo, he said. The EU's law and justice mission EULEX also operates in Kosovo.

Under the agreement no goods from Serbia will enter Kosovo but Pristina will not send its police and customs officers to the northern border posts. This situation will continue until mid-September when both Belgrade and Pristina resume talks in Brussels to resolve trade issues.