KHARTOUM, Jan 30 (Reuters) - Peace talks between the Ugandan government and the rebel LRA resumed on Wednesday in southern Sudan with the two sides signing a one-month extension to a cessation of hostilities, south Sudan's presidency said.

The talks have been hailed as a breakthrough after almost two decades of conflict and a largely forgotten humanitarian crisis. Relative stability has returned to Uganda's northern region, allowing tens of thousands of refugees to return home.

The resumption of talks, under the mediation of neighbouring south Sudan's semi-autonomous government, came despite news of the killing of Lord's Resistance Army (LRA) deputy leader Vincent Otti, considered a key peacebroker.

"The talks have resumed and they signed an extension of the cessation of hostilities," an official of south Sudan's presidential affairs ministry said.

A statement from the ministry said Interior Minister Ruhukana Rugunda headed the Ugandan government delegation with David Matsanga heading the LRA team.

The LRA has made any peace deal dependent on International Criminal Court indictments being dropped against its reclusive leader Joseph Kony and two of his commanders for crimes against humanity and war crimes.

Kony's LRA, whose avowed aim was to rule Uganda by the Ten Commandments, is accused of murdering and terrorising civilians and mass enslavement of children over two decades.

The two sides are expected to explore the possibility of a national special crimes court as an alternative to ICC prosecutions, to help bring about an agreement.

South Sudan's Vice President Riek Machar is the chief mediator in the talks, which resumed after a four-month break. (Reporting by Opheera McDoom; editing by Andrew Roche)

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