Kenya:The Kenyan government said yesterday it had agreed in principle to the creation of a prime minister's post as part of a possible powersharing peace deal with the opposition.
Negotiators were still discussing the crucial terms of the position, with the opposition pushing for the new post to assume many of the powers of the president.
However, analysts warned that a deal was only the first step towards easing tensions that have exploded into violence during the past two months.
Sources close to the talks said a settlement was finally in sight.
Kofi Annan, the former United Nations secretary general, who is mediating the talks, said: "I'm beginning to see light at the end of the tunnel."
Negotiators from the opposition Orange Democratic Movement want their leader, Raila Odinga, installed as prime minister. They believe President Mwai Kibaki stole the election in a ballot that most observers have agreed was flawed.
Yesterday, members of the government team said they would accept the new post.
Mutula Kilonzo said: "That is more or less agreed on. What we are discussing now is the post's functions, responsibilities, nature of appointment and so on." However, anything short of a prime minister with the role of head of government - rather than a simple leader of parliamentary business - is unlikely to placate opposition supporters who have said they will return to the streets if Mr Odinga is not given real power.
The east African nation has been relatively calm for the last two weeks but the threat of a return to violence, which has already killed at least 1,000 people and driven 300,000 from their homes, is taken seriously.
Opposition leaders have said they will take to the streets next week if parliament is not recalled to begin the process of constitutional reform.
The unrest has damaged Kenya's reputation as a trade and tourism hub and one of Africa's most stable nations, usually the host of peace talks rather than the subject of them.
The African Union's new chairman, Jean Ping, flew into Kenya yesterday to add his diplomatic weight to the crisis talks.
However, François Grignon, of the International Crisis Group, said a political deal should not distract from the business of trying to solve tribal and social faultlines exposed by the election crisis.
"The question that needs to be asked about a deal is will it make any difference? Will it address the issues at stake - equal access to resources and disarm the people driving violence," he said.
"We have had pledges before but nothing concrete."