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WASHINGTON (Reuters) - The United States on Wednesday accused Sudan's ruling party of undermining the fragile peace process, a sign that U.S. offers of increased engagement with Khartoum are failing to bring results.

The State Department said the ruling National Congress Party (NCP), which dominates the north, had reneged on a deal setting conditions for a January 2011 independence vote in the oil-rich south, a move that could spark new political hostilities.

"Reneging on the agreement ... undermines the peace process, jeopardizes Comprehensive Peace Agreement (CPA) implementation and risks sparking renewed hostilities between the parties," the department said in a statement.

It also expressed deep concern about Sudan's revised national security act, which it said contained no new measures for accountability of the security services ahead of the independence vote and a separate national election next year.

"For elections to be credible, it is incumbent on the regime to demonstrate in word and deed that this law will not be used to arrest and detain political opponents," the statement said.

"The government of Sudan must also make immediate and significant improvements to the electoral environment, including permitting peaceful demonstrations, ending press censorship and allowing opposition voices to be heard."

The Obama administration in October renewed economic sanctions on Khartoum but also offered new incentives to end violence in Darfur and the semi-autonomous south.

While critics said the new policy was not tough enough, U.S. officials stressed there would be significant consequences if Khartoum failed to make democratic changes.