The loyalist feud which has flared sporadically for years and claimed four lives since the summer, is said to be "permanently ended".
The Loyalist Volunteer Force (LVF) last night dramatically ordered its members to "stand down".
The move, which followed a similar announcement by the IRA on July 28th followed an announcement earlier that the feud between the LVF and the UVF which has flared sporadically for years and claimed four lives since the summer, is "permanently ended".
The move to disband the LVF, if enacted fully by its members, brings to an end not just the feud itself, but also a dangerous instability within loyalist paramilitaries and unionism.
The LVF was formed in 1996 under Billy Wright who was later murdered by the INLA at the Maze prison.
A statement issued earlier yesterday by an umbrella organisation for loyalist paramilitaries, Protestant clergy, unionist parties and community organisations claimed that mediation efforts to end the feud had been successful.
Loyalist Commission chairman, the Rev Mervyn Gibson, said: "The primary aim of the initiative was to stop further hurt and injury to any one person." He added: "A process of extensive talks was embarked upon independently with the UVF-Red Hand Commando and the LVF.
"Those initiating the process had the encouragement of many within political and community life and the prayer support of individuals and churches. We now believe that the feud has permanently ended."
The UVF and the much smaller associate group, the Red Hand Commando, may also issue a statement soon.
The spate of murders linked to the feud over the summer, the IRA declaration in July that its campaign was over and its subsequent decommissioning last month led to expectations that mediators would make a breakthrough.
There has been no bloodshed since mid-August. However the following month the violence led Northern Secretary Peter Hain to declare the UVF ceasefire was over.
Progressive Unionist Party leader David Ervine, who was earlier urged to end his party's UVF links, forecast nearly two weeks ago that a deal would be struck.
"I predict that loyalist guns will go silent," Mr Ervine said. "I couldn't possibly achieve that, but I know those who can and it is absolutely their determination to do so."
The news was welcomed by unionists and nationalists and the Northern Ireland Office. A British government spokesman said the development was welcome but that the government stood by its insistence that all paramilitary activity had to be ended.
North Belfast MP Nigel Dodds of the DUP said: "The ending of murder and bloodshed on our streets will be particularly welcome in the north Belfast area which has borne the brunt of the trouble.
"Communities have been set on edge and put into turmoil. I pay tribute to those who have worked so hard to bring this resolution about. Let us hope and pray that this announcement will be evidenced on the ground and that people's lives will return to normal."
The SDLP's Alex Attwood greeted the development with caution.
"This is a welcome development as far as it goes, but everyone wants to see a lot more. The LVF, UVF, IRA and others are judged against the same criteria - the end of terror, the ending of organised crime, and the end of control over communities. There have been a number of false dawns around the LVF before. That is why people will be cautious."