Taoiseach Bertie Ahern and British Prime Minister Tony Blair have said devolved government could be restored to Northern Ireland by 26 March if their agreement is endorsed.
After three days of intensive negotiations in Scotland, the two leaders unveiled the St Andrews Agreement, setting out a sequence of moves on policing aimed at reviving devolution.
The proposal has been put to the Northern parties, who will consider it over the coming weeks before returning with their decisions by 10 November.
Under the deal, a new Preparation for Government Committee will meet at Stormont to agree priorities for a new power sharing government.
By 21 November, special legislation will be introduced at Westminster to give effect to the St Andrews deal.
The Assembly would then meet three days later to nominate a DUP First Minister and Sinn Féin Deputy First Minister.
That would be followed by an Independent Monitoring Commission report in January, endorsement by the electorate early in March followed by the nomination of other ministers on 14 March.
Under the proposals, power would finally be devolved on 26 March next year.
Ahern stresses deadline
Taoiseach Bertie Ahern has said that if the deadlines set by the two governments today are not met, the plan falters and there will be a move to plan B with no more discussions.
He denied that the plan would overwrite the Good Friday Agreement. The Good Friday Agreement, he said, always had a clause for a review, which was due to take place in 2004.
The Taoiseach said the St Andrews plan was the amendment part of that review.
Mr Ahern said the substance of the entire Good Friday Agreement was exactly that same apart from a few amendments. But he said the Good Friday Agreement would have to be read with the St Andrews Agreement into the future.
Mr Ahern said Dr Ian Paisley and the DUP have said to him that they are committed to the process. He added that Dr Paisley had said he will support the agreement on the plans for the office of First Minister and Deputy First Minister.
Sinn Féin leader Gerry Adams appealed to republicans, nationalists and unionists to carefully examine the proposals and be a part of the decision process.
The Chairman of the Northern Ireland Policing Board, Professor Desmond Rea, tonight welcomed the proposals and said he was pleased there has been positive progress over the last few days.
A spokesman at the US State Department said the United States also welcomed the announcement.
