Kosovo's Cabinet has withdrawn a much-contested draft law on the ratification of the border demarcation agreement with neighboring Montenegro, apparently bowing to opposition pressure.

Prime Minister Isa Mustafa on Thursday said the law was withdrawn because of the tense situation, and pledged renewed cooperation on a new draft.

For a year now the opposition Self-Determination and two other political parties have contested the deal saying it cedes territory to Montenegro, a claim the government rejects.