Museveni had said multi-party politics would divide Uganda

Under pressure from donors, President Yoweri Museveni has previously promised a referendum on whether multi-party politics should be restored.

But correspondents say the court appears to have made that unnecessary.

The court also ruled that parties have six months to register. The next elections are scheduled for 2006.

The former ruling Uganda People's Congress said that it was going to register immediately.

Until now, only Mr Museveni's "Movement" system has been permitted to take part in elections.

The government has not yet commented on the court ruling.

'No fixed abode'

Mr Museveni has previously argued that multi-party politics would divide Uganda along ethnic and religious lines.

Registered political parties are now allowed to operate but most of the major opposition groups had refused to register.

Their appeal against having to register was rejected by the courts.

The judges said registration would "help to reduce trifling parties which were formed for financial gain and had no fixed abode or address".

But the court upheld the parties' argument that candidates who have been living abroad should be allowed to lead political parties.

Mr Museveni's critics accuse him of only agreeing to multi-party politics if he is able to run for president.