Gulbuddin Hekmatyar signed the document at a ceremony attended by government officials, members of the insurgent leader's Hezb-e Islami and other figures at the presidential palace through video link.

"With this agreement, I hope to put an end to the current crisis in the country," Hekmatyar, who is believed to be living in Pakistan, said in his message.

"I call on all sides to support this peace deal and I call on the opposition parties of the government to join the peace process and pursue their goals through peaceful means," she said.

It is the first peace deal the Afghan government has signed with an insurgent group since the US military intervention and war with the Taliban began in 2001.

The government hopes the deal will be a template for peace deals with other armed groups, including the Taliban.

"This is a chance for the Taliban and other militant groups to show what their decision is: To be with people and join the respected caravan of peace, like Hezb-i-Islami, or confront the people and continue the bloodshed," Ghani said.

Government peace talks with the Taliban have yet to take off as the insurgents pursue an offensive, although both sides have said they are open to the idea.

The deal envisions Hezb-i-Islami dropping its arms and becoming a political party. The Afghan government also pledged to lobby for international and US sanctions against Hekmatyar and his party to be lifted.

The United Nations considers Hezb-i-Islami to be a foreign terrorist organization and Hekmatyar is designated as a global terrorist by the United States.

A US official said the Afghan government's request to lift restrictions on Hekmatyar and his group would be considered in the interest of advancing peace in the country.

"If the (UN) Security Council deems sanctions imposed on certain individuals to be outdated and no longer in the interests of Afghan peace and stability, then we will need to reconsider these measures," he said.

The European Union praised the Afghan government and Hezb-i-Islami for engaging in a political process that brought results.

"This Afghan-led and Afghan-owned success must encourage others to come forward and commit to peace," EU foreign policy chief Federica Mogherini said. "The challenge now lies in ensuring that the parties fully implement the agreement."

The peace deal's granting of immunity to Hekmatyar and his followers remains controversial.

An active figure in the insurgency against the Soviet invasion in the 1980s and the civil war in the 1990s, including a stint as prime minister before the Taliban came to power, Hekmatyar has a bloodly and ruthless past. Known as the "Butcher of Kabul," he was behind punishing rocket attacks on the capital in the 1990s civil war that killed thousands of people.

Human Rights Watch last week described Hekmatyar as "one of Afghanistan's most notorious war crimes suspects." It said the terms of the peace deal would "compound a culture of impunity" for warlords and others accused of atrocities against civilians.

cw/kms (AFP, AP, dpa, Reuters)