The ceasefire between the Centre and the Khaplang group of the Nationalist Socialist Council of Nagalim was extended by a year on Thursday, official sources said.
The decision was taken at a meeting between home ministry officials, led by Special Secretary (Internal Security) Anil Chowdhry, officials of the Nagaland government and representatives of the NSCN-K in New Delhi, the sources said.
The sources said the extension of the ceasefire was seen by both sides as the only way to move towards a permanent solution to the Naga issue.
The Khaplang faction had conducted prolonged parleys with representatives of the Centre before arriving at an agreement on April 11, 2001, to hold talks and cease violence.
A ceasefire monitoring board, comprising five people each of the Centre and the NSCN-K, was set up and the ground rules for the ceasefire finalised.
The Khaplang faction suffered a setback in 2003 when the Myanmar army ran over its camps, including its headquarters.
The Centre is also trying to reach a ceasefire agreement with the major Naga faction, the NSCN (Isaac-Muivah). A group of ministers, led by Oscar Fernandes, is holding talks with them separately.