London (AFP) - Northern Ireland's power-sharing government was pulled back from the brink of collapse Tuesday by a deal struck after ten weeks of deadlock linked to alleged IRA activity.

The administration featuring former foes the Democratic Unionist Party (DUP), who are pro-British, and Sinn Fein, which wants Northern Ireland to be part of the Republic of Ireland, is set to resume normal work after the stalemate which threatened Northern Ireland's hard-earned stability.

The new agreement runs to nearly 70 pages and features a string of measures designed to allay suspicions about the ongoing role of paramilitary groups in Northern Ireland while boosting its economy.

British Prime Minister David Cameron called it "an important turning point for Northern Ireland" while his Irish counterpart Enda Kenny said it "tackles the toxic legacy of paramilitarism and its links to criminality."

Northern Ireland, whose government has devolved powers from London, endured 30 years of sectarian violence known as The Troubles in which 3,500 people died.

A 1998 peace deal, that led to the formation of a power-sharing government, ended most of the violence.

But in September, DUP First Minister Peter Robinson abruptly resigned, causing concern for the future of the executive.

His resignation came a day after a senior figure in his power-sharing partners Sinn Fein -- formerly seen as the political wing of the Irish Republican Army (IRA) paramilitary group -- was arrested in connection with the murder of a former IRA gunman.

The Sinn Fein man, Bobby Storey, was later released without charge and his lawyer said he would sue police for unlawful arrest. Robinson resumed his duties last month.

But the stalemate, which was also connected to a budget crisis over welfare reforms not being implemented, lingered on until Tuesday's deal was signed by Robinson and his deputy, Sinn Fein's Martin McGuinness.

The deal includes a string of pledges to eliminate the influence of paramilitary groups.

It also agrees that corporation tax in Northern Ireland should be cut to 12.5 percent, the same as in Ireland.