The Yemeni UN-backed government and the Southern Transitional Council (STC) signed here on Tuesday a Saudi-sponsored "Riyadh Agreement," Al Arabiya TV reported.

The signing ceremony was attended by Saudi Crown Prince Mohammed bin Salman Al Saud, Abu Dhabi Crown Prince Sheikh Mohammed bin Zayed Al Nahyan, Yemeni President Abd-Rabbu Mansour Hadi, President of the STC Aidarus al-Zoubaidi, alongside other Arab and Western officials and ambassadors.

The Saudi crown prince described the agreement in a televised speech as "a step toward a political solution to end the war in Yemen."

The agreement between the two sides, which are united against the Iranian-backed Houthi militia, initiates a new stage of cooperation in the area under their control, he added.

The main points of the deal include the return of the exiled Hadi government to Aden within seven days, the unification of all military formations under the authority of the ministries of interior and defense, and the formation of an efficient government made up equally between the north and south of Yemen.