French energy groups Areva and EDF have reached an agreement on the treatment of nuclear waste following weeks of tensions, the companies announced Friday.

"The two companies will sign a contract before the end of the first quarter of 2010," the said in a joint statement.

The agreement relates to the transportation, treatment and recycling of used nuclear material, they said.

Areva, a world leader in nuclear energy, and utilities group EDF said they would continue talks on uranium enrichment.

The chief executives of the two companies were called in to Prime Minister Francois Fillon's office for talks on January 20 and the government gave them until Thursday to reach an agreement on the contract.

In a statement, Fillon welcomed the waste management deal and said he expects negotiations on enrichment to "end with an agreement soon."

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