Zimbabwean President Robert Mugabe, left and Morgan Tsvangirai, leader of the main opposition party, are seen at the signing of a memorandum of understanding between the two parties in Harare, Monday, July, 21, 2008. Zimbabwe's embattled president and his opposition rival have agreed to hold talks to resolve the country's political and economic crisis within two weeks. (AP Photo/Tsvangirayi Mukwazhi)

HARARE, Zimbabwe — Three months after the voting and violence began, Zimbabwe's embattled President Robert Mugabe and his bitter opposition rival agreed Monday to hold talks immediately about sharing power to end the country's political crisis.

But their first joint appearance in a decade did not bring relief to Zimbabweans grappling with the world's worst inflation. They lined up outside banks for Monday's release of a new Zimbabwe $100 billion note issued by the central bank — an instant hit with collectors on eBay.

Mugabe and opposition leader Morgan Tsvangirai signed the breakthrough deal agreeing in cautious language that they have an obligation to establish a framework of "working together in an inclusive government." It commits them to creating a "genuine, viable, permanent and sustainable solution" within two weeks and calls on parties to "eliminate all forms of political violence."

The deal, following three months of state-sponsored electoral violence, was seen as a victory for the opposition and was similar in concept to the pact worked out to end ethnic and political violence in Kenya that killed more than 1,000 people earlier this year.

Tsvangirai called it "the first tentative step toward searching for a solution," adding that "not finding a solution is not an option."

Mugabe stressed that they must "chart a new way" and act without influence from Europe or the United States — a dig at Tsvangirai, whom he calls a Western puppet.

An official from Tsvangirai's party said the talks are to begin Thursday in South Africa's capital, Pretoria, with representatives from both sides.

The agreement sets out priorities of a new government, including restoring economic stability, and calls for discussing land reform and Western sanctions targeting Mugabe and about 130 of his top aides.

It was also signed by South Africa's President Thabo Mbeki, the mediator for whom the agreement is a diplomatic coup. Mbeki had insisted that dialogue, not punitive sanctions, was the only way to deal with Mugabe.

Zimbabwe's leader of 28 years appeared nervous and shook hands with everyone except Tsvangirai after the signing. At a news conference later, he posed for journalists giving Tsvangirai a tentative handshake.

Head bowed, Mugabe stood between a beaming Tsvangirai and opposition leader Arthur Mutambara, never once looking directly at Tsvangirai during the hourlong ceremony and news conference.

For Mugabe and Tsvangirai, it was a rare meeting of two longtime foes. They last crossed paths at a 1998 Workers' Day rally when Tsvangirai was secretary-general of Zimbabwe's trade union federation, said George Sibotshiwe, spokesman for Tsvangirai's party. Tsvangirai became leader of the main opposition Movement for Democratic Change party in 1999.

Many see a coalition — perhaps with Mugabe as president and Tsvangirai as prime minister or vice president — as the only way to lead the nation out of the impasse and begin reversing its economic collapse.

The central bank issued a $100 billion note Monday in an attempt to keep up with mind-boggling inflation officially set at 2.2 million percent, but unofficially much higher.