By Dmitry Solovyov

KIEV, May 27 (Reuters) Ukraine is to hold a parliamentary election on September 30, President Viktor Yushchenko said today after late-night talks forged a compromise to end weeks of tense confrontation with his prime minister.

Yushchenko, who issued two decrees last month dissolving parliament and calling a snap election, announced the date after negotiations with his rival, Prime Minister Viktor Yanukovich, that extended into the early hours of the morning.

The pro-Western president, swept to power after defeating Yanukovich in the aftermath of weeks of ''Orange Revolution'' street rallies in 2004, said parliament would this week consider legislation required to hold the poll.

A struggle between Yushchenko and Yanukovich, closer to Moscow in outlook, over a division of powers had plunged the ex-Soviet state into a prolonged political crisis.

''We have produced an agreement that in order to resolve the political crisis an early parliamentary election is to be held on September 30,'' Yushchenko said.

''Ukraine emerges much stronger from this crisis than it was before April...It is very gratifying for me to see that by this Ukraine is demonstrating the development of its democracy. This is truly a wonderful result.'' Yanukovich said the agreement reflected a will on all sides to hold an honest and fair election, respect the law and keep from interfering in the judicial process.

''I believe the experience we have acquired from this crisis shows that we have learned certain lessons,'' he said.

The president then thanked Yanukovich and Parliament Speaker Oleksander Moroz for a successful conclusion to the talks and the three joined hands.

TENSE TUG-OF-WAR Yushchenko and Yanukovich had been in talks since the president issued the first of his decrees on April 2. The president dissolved the chamber, accusing Yanukovich of poaching his allies in parliament to expand the ruling coalition and enable the premier to change the constitution.

Yanukovich initially resisted the dissolution order but later agreed to an election. They remained at odds over a date, with the president seeking an election as quickly as possible and the prime minister saying none could be held before autumn.

Weeks of turmoil boiled over on Friday when the head of state said he was taking control of the Interior Ministry troops, a move denounced by Yanukovich as dangerous and unconstitutional.

The president ordered the dispatch of interior troops to Kiev on Saturday, though most remained blocked outside the city.

Moroz told reporters he still opposed an early election, but was agreed with the date to pull the country out of crisis.

Yanukovich made a comeback from his defeat in 2004 and was named prime minister after his Regions Party took first place in the last parliamentary poll a year ago and the president's allies proved unable to form a government.

Recent opinion polls show parties backing the two rivals in a virtual dead head, each with about 40 per cent support.

REUTERS GT HT0908