By Francis Kwera

KAMPALA, Jan 29 (Reuters) - Uganda on Tuesday extended a Jan. 31 deadline for the Lord's Resistance Army (LRA) rebels to sign a peace deal, lessening the prospect of military action occurring soon.

President Yoweri Museveni's government had given LRA leader Joseph Kony until the end of the month to sign a deal or risk a return to war. Peace talks are set to resume on Wednesday.

Military chiefs from Uganda and neighbouring Democratic Republic of Congo had begun drawing up strategies against the LRA.

"President Museveni has accepted that we can continue with the peace talks," said Ruhakana Rugunda, leader of the government delegation at peace talks that began last year in Juba, South Sudan, and have been on and off ever since.

"The extension is aimed at creating a better atmosphere for the talks to take place so that we can sign a comprehensive peace agreement soon," said Rugunda, who is also Uganda's Interior Minister.

Kony's 20-year rebellion killed tens of thousands of people and uprooted 2 million before a ceasefire last year.

The talks due to resume on Wednesday in Jub will focus on how to deal with crimes committed during the war.

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

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. (Editing by Nick Tattersall)