New Delhi, June 6 -- Israel and Lebanon have agreed to renew their shaky ceasefire, with an aim to continue talks later this month for a comprehensive peace deal.

The U.S.-brokered agreement, announced in a joint statement by the U.S., Israel and Lebanon Wednesday, comes after Israeli forces made their deepest incursion into Lebanon in more than a quarter century.

But it includes several contentious points, including the creation of "pilot" security zones inside Lebanon from which the Iran-backed Hezbollah militant group that Israel has been fighting would be banned, and a stipulation about the group's eventual disbanding.

Lebanese President Joseph Aoun said Thursday the deal is the "last chance to enter a final and comprehensive cease...