Yemen's internationally recognized government and separatists from the south on Tuesday signed a power-sharing agreement brokered by Saudi Arabia in an attempt to bring to an end infighting.

The deal paves the way for wider peace talks to end the five-year civil war.

The ceremony was attended by Abu Dhabi Crown Prince Sheikh Mohammed bin Zayed al-Nahyan, along with Hadi and the separatist Southern Transitional Council (STC) leader Aidarous al-Zubaidi.

Elements of the deal also include the return of the UN-backed government to Aden within seven days to reactivate state institutions. The separatists also agreed to disband their militias, which would be integrated into Hadi's forces within three months. 

"This agreement will open, God willing, broader talks between Yemeni parties to reach a political solution and end the war," Crown Prince Mohammed bin Salman said in a televised signing ceremony in Riyadh. 

He also described the deal as "a joyful day in Saudi as the two sides come together," noting that the agreement will open a new period of stability in Yemen. 

"The kingdom of Saudi Arabia stands with you," he added. 

Saudi Arabia's envoy to Yemen told reporters that the pact, reached after more than a month of indirect talks in the kingdom, would see the separatist STC join a new cabinet along with other southerners and all armed forces would be placed under government control. 

The STC, which seeks self-rule in the south and a say in Yemen's future, turned on Hadi's government in August, seizing its interim seat in the southern port of Aden and trying to extend its reach in the south. 

U.S. President Donald Trump, who rarely comments on the civil war in Yemen, hailed the agreement as "a very good start," adding "please all work hard to get a final deal."

UN special envoy, Martin Griffiths also said the agreement was "an important step for our collective efforts to advance a peaceful settlement to the conflict in Yemen. 

"Listening to southern stakeholders is important to the political efforts to achieve peace in the country," he said in a tweet.

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Yemen forces, separatists tussle for control of Aden

Aden became the government's base after Houthi rebels seized control of Sanaa in 2014. However, the STC captured Aden in August and began a campaign to extend its influence in the south.

The infighting between the two sides also caused a diversion from the Saudi-led response to the Houthi movement.

It also raised fears that Yemen could split apart with detrimental repercussions.

Prior to the signing of the deal, both sides had held indirect talks mediated by Saudi Arabia in Jeddah.

(With input from Reuters, AFP)