A closure latch assembly for a motor vehicle closure system having a latch mechanism, a latch release mechanism for releasing the latch mechanism, and an outside backup release mechanism operable, in cooperating with the latch mechanism and the latch release mechanism, to provide an external latch release function and a separate and distinct latch reset function. The external latch release function is initiated by a first-key actuation operation associated with a door-mounted key release mechanism. The latch reset function is initiated, after the external latch release function, via a second key-actuated operation associated with a reset device on the closure latch assembly.