Zimbabwean president Robert Mugabe was locked in long talks with opposition leaders today after signs they were about to reach a power-sharing deal to end a post-election political crisis.
The talks in a Harare hotel, mediated by South African president Thabo Mbeki, were still in progress nearly nine hours after Mugabe started meeting MDC opposition leader Morgan Tsvangirai and MDC breakaway faction leader Arthur Mutambara.
The discussions are the clearest sign yet that an agreement, which could end the post-election political crisis and increase the chances of recovery from an economic catastrophe, is within reach.
State radio did not give details on the discussions between Mr Mbeki, Mr Mugabe, opposition MDC leader Morgan Tsvangirai and Arthur Mutambara, leader of the breakaway MDC faction.
Talks began last month in the aftermath of Mr Mugabe's re-election unopposed in June in a poll condemned around the world and boycotted by Mr Tsvangirai because of attacks on his supporters.
Mr Mutambara said in a newspaper article earlier that a compromise agreement was close. He said that despite limitations it offered the "best temporary measure to extricate the country from its worst situation".
A deal could mean Mr Mugabe has survived elections that posed the biggest challenge to his rule, but might also remove some of the power that has allowed him to govern with an iron hand. Both sides are under pressure for a deal.
Zimbabweans and neighbouring countries hope an agreement could end years of political turmoil and revive an economy whose collapse has spilled millions of people across Zimbabwe's borders.
Investors are nevertheless likely to remain cautious about making financial commitments, seeking tangible signs of long-term political stability and a government with the credentials to rebuild the country.
A senior ruling Zanu-PF official said today that Mr Tsvangirai, Mr Mugabe and Mr Mutambara were expected to hold three-way talks.
Any deal would require a green light from security and military chiefs, powerful figures with wide sway over Mugabe who want to make sure they are not vulnerable to international prosecution when the political dust settles, analysts say.
The Zanu-PF official said a major breakthrough was reached when the MDC agreed to recognise Mr Mugabe's legitimacy as president. He said Mr Mugabe's position was not negotiable.
Zanu-PF had agreed on Mr Tsvangirai as prime minister, but "not in the sense" of media reports which have said he will be given executive powers while Mr Mugabe becomes a ceremonial president, said the Zanu-PF official.
MDC officials were not immediately available for comment.