Mr Woodward made his remarks in a written statement in Parliament after Tuesday's confirmation by Peter Robinson and Martin McGuinness that they had rwached a compromise on the devolution of policing and justice.

The Secretary of State expressed satisfaction that the parties had been able to reach agreement without the intervention of the British and Irish governments.

"This breakthrough represents a new chapter for Northern Ireland, marking the beginning of an agreed process that will end in the transfer of policing of justice and powers from this House to locally elected politicians in the power-sharing assembly," he told MPs.

"As well as agreeing the steps to transfer these crucial powers, the events of this week mark the maturing of democracy in Northern Ireland.

"Yesterday's agreement was the product of negotiations between the political parties of Northern Ireland; its essential strength will rest in being an agreement made by Belfast in Belfast for all the people of Northern Ireland," he added.

On the floor of the Commons, MPs spoke broadly in favour of the devolution of policing powers.

Former Secretary of State Peter Hain described the agreement as a "relief".

When Mr Woodward was asked by a Tory representative if any lessons should be learned from the 152 day deadlock, DUP MP Gregory Campbell retorted: "One of the lessons is that you should stand up to unacceptable demands by Sinn Fein."