Serbia adopted on Thursday a draft decentralisation plan that would give its northern province of Vojvodina wide autonomy.

The draft plan, however, would not give Vojvodina -- a province bordering Hungary with more than 25 ethnic minorities and a Serb majority -- statehood status, the government said in a statement.

The proposal would allow the province to sign contracts with other regions, but not with states. Its assembly would not be able to make legally-binding decisions, but it will arrange and govern the courts in its own territory.

Vojvodina would also have a development bank, but the province's assets would be governed by a special law, the draft said.

The statute of Vojvodina, home to two million people, is one of the major issues in the government's policy of decentralisation in the republic of more than 7.5 million people.

- The draft provides the jurisdiction of the province to be in accordance with the Constitution, consistent implementation of decentralisation process and concept of wide autonomy for Vojvodina, without statehood elements - the government statement said.

The main ethnic Hungarian party in Vojvodina, the Alliance of Vojvodina Hungarians, said the draft was "not ideal," but promised its support "as we do not want to stop the development" of the province.

Ethnic Hungarians make up around 14 percent of Vojvodina's population.

Supporters of the draft -- which would have to be adopted by the Serbian parliament in the coming weeks -- said it would allow the province to be more free from the central power in Belgrade in its decision-making.

But opponents, mostly from opposition nationalist parties, have warned that it would pave the way for Vojvodina to separate from Serbia as Kosovo has done.

Kosovo has been recognised by 62 countries since its declaration of independence last year, including the United States and most European Union members. Serbia, backed by Russia, opposes Kosovo's independence.