South Sudan President Salva Kiir has reappointed bitter rival Riek Machar as vice-president as part of a peace deal aimed at ending more than two years of war, state television reported.
The civil conflict erupted in December 2013 after Mr Kiir accused Mr Machar of plotting a coup.
Since then thousands have died and more than two million have been displaced.
South Sudan is the world's youngest country and one of the least developed. It split from the North in 2011.
Amid a threat of sanctions from the UN, the two sides signed a peace deal in August last year.
Fighting was supposed to stop immediately but there have been frequent violations.
The men also agreed to share out ministerial positions, and a presidential decree read out on state television confirmed Mr Machar's reappointment.
It returns the government to where it was before the war broke out.
Conflict on the ground continues to take its toll on civilian despite the peace deal
Mr Machar, who is not currently in South Sudan, has welcomed the move, telling the BBC he could return within three weeks if security arrangements were implemented.
"I'm eager to ensure that peace returns to the country, political stability is maintained, the permanent peace is respected - I'm confident we can do this," he said.
Pressure will now grow for the men to form a transitional government - another part of the peace agreement, says the BBC's James Copnall, a former Sudan correspondent.
The UN and African Union have accused both sides of carrying out atrocities - last month an AU-backed report alleged that 50 civilians had suffocated after government troops locked them in a shipping container.
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