The plan, presented by Britain, France and Germany, aims to resolve a seven-month dispute with the United States, which had denounced earlier plans for an EU military headquarters as a serious threat to the unity of the NATO alliance.

“What this gives us is the opportunity to keep the trans-Atlantic, the American alliance very strong,” said British Prime Minister Tony Blair.

He said it would keep NATO as the “cornerstone” of Europe’s defense, while ensuring the EU can act on its own when “vital European interests” are at stake.

Under the new agreement, the EU will set up a defense planning cell based at NATO’s military headquarters in southern Belgium to run European missions with help from the alliance.

The EU will boost its existing military staff in Brussels with more planning officers to coordinate military missions run by French, British or German national headquarters when NATO is not involved. NATO liaison officers will be based at the EU.

According to the text agreed by the summit the new arrangements “should enter into force as early as possible in 2004.”

NATO welcomed the proposals when they was submitted by France, Germany and Britain Thursday night. Lord Robertson, the alliance secretary general, said implementation of the plan “will be a good deal for the EU and for NATO.”

His comments signaled an end an argument that erupted in April when the United States rejected plans announced by France, Germany, Belgium and Luxembourg for an EU headquarters, separate from NATO.

(See related story on page 2)