UPDATE 1-Togo opposition leader joins gov't, angers supporters

* Veteran opposition leader joins government for first time

* Move divides opposition despite naming of ministers

(Recasts with announcement of new government)

By John Zodzi

LOME, May 28 (Reuters) - The head of Togo's main opposition party has agreed to enter into a coalition with the ruling RPT in a deal that gives it seven ministries, including foreign affairs, but also deepens divisions within party ranks.

The deal brokered by veteran UFC party leader Gilchrist Olympio was rejected by another prominent UFC member, raising the likelihood it will fragment the country's opposition, which had been contesting incumbent President Faure Gnassingbe's election win in March.

"This long battle for democracy, the rule of law ... and economic and social development for the Togolese people has sadly not achieved the results we had hoped for," Olympio, leader of the UFC for two decades, told a news conference.

"That is why, after laborious discussions with the RPT, and having secured the whole-hearted support of our (party's) federations, I have taken the decision to propose for the first time a new way out of the crisis through sharing power."

According to the deal between Olympio, son of Togo's first president, and Gnassingbe's RPT, the UFC will help oversee state-run businesses, local government and the diplomatic corps, and gain cabinet positions.