The British government tonight officially recognised the Ulster Defence Association's ceasefire in a new move to boost the Northern Ireland peace process.
Northern Ireland Secretary Mr Paul Murphy decided to give the North's biggest loyalist paramilitary organisation another chance to prove its credentials after receiving assurances that it would end the violence.
He said: "I am persuaded that UDA is now prepared to go down a different road, moving away from its paramilitary past."
The Independent Monitoring Commission terrorist watchdog's latest report blamed the UDA for running organised crime rackets and paramilitary shootings.
But even though the organisation is regarded as nakedly sectarian by Catholics, its representatives claim they want to end all violence.
With loyalists desperate to become more involved in the political process, contacts with the British government have been intensified.
Earlier this month Mr Murphy held talks with members of the UDA's inner council, including Mr Andre Shoukri and Mr Jackie McDonald.
That meeting gave the Ulster Secretary enough confidence to make his bold move and give the UDA another opportunity, three years after his predecessor Dr John Reid declared its ceasefire obsolete.
A major announcement from the paramilitary group is expected in return for the t recognition, which takes effect from midnight on Sunday.
"My decision, reached only after the most careful consideration, is based on a number of factors, in line with the legislation," Mr Murphy said.
"They include the UDA's reaffirmation in February this year of its Gregg Initiative, when it re-stated its commitment to its ceasefire; the organisation's generally constructive approach during this year's marching season; and some diminution in paramilitary activity by its members over the past six months, as reflected in the IMC's recent report.
"But as that report also makes clear, the UDA continues to be involved in a range of unacceptable activities which must be brought to an end."
He also paid tribute to the "positive" political efforts by the UDA's advisers in the Ulster Political Research Group.