A compromise has been reached between the main rebel group and the leader of Liberia's new power-sharing government.
Liberians are desperate for peace
Gyude Bryant, who was sworn in earlier this month, agreed to reconsider Lurd nominations to senior posts.
In return, Lurd dropped their threat not to disarm unless he stand down. The row was seen as the most serious threat to a recent deal ending a 14 year war.
"Lurd has resolved to work together in the interest of the nation," announced Parliamentary Speaker George Dweh.
Mr Dweh, who is also a senior Lurd rebel official, said that the agreement was reached after a meeting at Parliament on Monday.
Mr Bryant, seen as politically neutral, was chosen to head the new government by two rebel groups, loyalists of former President Charles Taylor and political parties at talks in neighbouring Ghana.
An accord gave each group five ministers in the government and a series of key administrative posts.
However, a row erupted after Mr Bryant rejected three Lurd nominees for the posts of deputy central bank head, chief of staff of the new national army and head of the government's customs and excise department.
Mr Bryant said these posts were not allocated to Lurd in the accord. Lurd said he was violating the deal.
Mr Taylor stood down and went into exile in Nigeria as part of the deal, after Lurd forces had entered the capital, Monrovia.
Some 4,300 United Nations peacekeepers have helped bring relative calm to Monrovia but Lurd and their Model allies still control most of the country.
Since the row, Lurd fighters have turned back humanitarian convoys heading into areas they control.