Zimbabwe's President Robert Mugabe and opposition leaders are holding power-sharing talks for a second day Tuesday in the capital of Harare.
The state-run Herald newspaper says South African President Thabo Mbeki has presented a proposal that will form the basis for further negotiations between Mr. Mugabe and Morgan Tsvangirai, leader of the main opposition, Movement for Democratic Change.
Talks ended Monday without both sides reaching an agreement, and anonymous sources within Mr. Mugabe's ruling ZANU-PF party say they do not expect any breakthrough in the talks.
Tsvangirai has rejected a proposal for Mr. Mugabe to remain president and keep control over security forces, while Tsvangirai would become prime minister without any real political power.
The president has threatened to form a new government without the MDC unless Tsvangirai signs a power-sharing deal.
But Arthur Mutambara, the head of a breakaway opposition faction, said Monday he will not make any deal with the ruling ZANU-PF party that does not include the MDC.
Tsvangirai's party gained control of parliament in the March legislative elections, and he won more votes than Mr. Mugabe in the presidential vote.
Tsvangirai fell short of a majority, however, and he refused to compete in a runoff presidential election because of state-sponsored attacks on his supporters.
Mr. Mugabe won the uncontested runoff, securing his nearly three-decade-long rule.
The president tolerates little dissent, and critics say he has driven the country into economic ruin. Mr. Mugabe blames Zimbabwe's skyrocketing inflation and unemployment rates on Western sanctions against his government.
Some information for this report was provided by AFP, AP and Reuters.