BRITISH Prime Minister David Cameron and Scottish First Minister Alex Salmond have signed an agreement to hold a referendum in 2014 on Scottish independence.
TV pictures showed the two men signing the agreement in Edinburgh on Monday.
"The referendum agreement has been signed," a spokeswoman for Cameron's Downing Street residence told AFP, following talks in Edinburgh between Cameron and Salmond, who leads the pro-independence Scottish National Party.
The referendum could lead to the United Kingdom breaking up after 300 years, leaving only England, Wales and Northern Ireland in the union.
Cameron strongly opposes a Scottish breakaway and the signing of the terms fires the starting gun on two years of campaigning pitching the leaders on opposite sides.
After months of negotiations, the deal is expected to give Scotland's administration the power to hold a vote in the final quarter of 2014, offering Scots a straight yes-or-no question on leaving the United Kingdom.
But support among Scots for independence appears to be slipping, with a survey by pollsters TNS-BMRB released last week showing 28 per cent in favour and 53 per cent opposed.
Cameron said: "I want to be the Prime Minister that keeps the United Kingdom together, but I believe in showing respect to people in Scotland.
"The people of Scotland voted for a party that wanted to have a referendum on independence. I've made sure, showing them respect, that we can have that referendum in a way that is decisive, that is legal, that is fair but crucially is one single simple question, whether Scotland wants to stay in the United Kingdom or go.
"This is going to be a cross-party campaign; there are many other parties, the Labour party, the Liberal Democrat party as well as the Conservative party, and people who belong to no party at all who care passionately about this issue.
"Let now the arguments be put and let's make all the arguments about why the United Kingdom is better off together. We're stronger together around the world, we're safer together here at home, we're better off together, our economies are stronger.
"Not just that Scotland I believe is better off in the United Kingdom but the United Kingdom, England, Wales, Northern Ireland are better off with Scotland being part of this family, so I'll be arguing to keep the family together.
"This is an important day for the United Kingdom, but you can't haul the country of the United Kingdom against the will of its people. Scotland voted for a party that wanted to hold a referendum."
Speaking at a press conference, Salmond said: "It paves the way for the most important decision our country of Scotland has made in several hundred years.
"It is, in that sense, an historic day for Scotland and a major step forward in Scotland's home rule journey."
The First Minister said securing an agreement on the process of the referendum meant there would be "respect" for the outcome "whatever it is". It also allows the SNP to now deal with the "substantive" arguments involved in devolution, he added.
Salmond added: "Do I believe that independence will win this campaign? Yes, I do. I believe we'll win it by setting out a positive vision for a better future for our country economically and also, crucially, socially."
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