Mr David Trimble and Mr Mark Durkan, who orchestrated the deal that convinced loyalists to end their protest at Holy Cross school, have welcomed the decision as a "vital step" to restoring peace to north Belfast.
In a joint statement, they said they were now looking forward to the pupils of Holy Cross going to school "unhindered" on Monday.
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"The decision will create a climate that will help [local people] address the wider socio-economic problems facing north Belfast," the statement added.
The Taoiseach, Mr Bertie Ahern, also welcomed the breakthrough, and congratulated those in the Northern Ireland executive and the local community who had been involved in achieving the settlement.
He said he hoped it would now be possible to bring back normality to the people of the Ardoyne - "especially the children".
North Belfast DUP MP Mr Nigel Dodds insisted loyalists had not outmanoeuvred the parents.
"I don’t think there’s any question of rewards or victories or anything in this," he said. "Some of the issues that are now being addressed are long overdue for addressing, they should have been addressed years ago."
Mr Billy Hutchinson, a Stormont MLA with the loyalist PUP, urged Catholic representatives to meet the residents.
"Hopefully over the weekend there will be a response from nationalists about when and where they get into talks to try and resolve this for good," he said.
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The DUP's Mr Nigel Dodds
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Sinn Féin Assemblyman for North Belfast, Mr Gerry Kelly warned that other flashpoint parts of the area now needed a similar resolution.
"These things have been going on well before this protest and unfortunately may go on well after it.
"But is it a good sign if we can talk at this part of the interface and can we do it at others? I certainly hope so and that’s what I will be pushing for."
The Northern Ireland Secretary Dr John Reid was also swift to respond to the loyalists’ move.
"If this issue can be resolved it will be a welcome and positive move forward."
PA