The outline of a deal has almost been reached for Zimbabwe's President Robert Mugabe to step down, opposition sources have told the BBC.
They say representatives of Mr Mugabe, military chiefs and the opposition have held meetings chaired by South Africa since Saturday's elections.
The sources say Mr Mugabe is to give an address to the nation but urge caution until the announcement has been made.
Zimbabwe and South Africa's governments denied any negotiations or a deal.
But the US embassy in the capital Harare said Mr Mugabe was expected to address the people of Zimbabwe shortly.
Claim and counter-claim
Western diplomats had been summoned to a meeting with the government, the embassy told the BBC.
The opposition Movement for Democratic Change says it won Saturday's general elections, but results have been slow to emerge.
Under the proposed deal, MDC leader Morgan Tsvangirai would be declared the winner of the presidential race after Mr Mugabe publicly announced he was stepping down.
President Mugabe, 84, came to power 28 years ago at independence, but the economy has been in freefall in recent years.
The Zimbabwe Electoral Commission has not yet given any results in the presidential race, sparking MDC claims that the outcome was being fixed.
BBC correspondent Ian Pannell has spoken to three MDC sources who have claimed a deal had almost been reached.
Run-off vote?
The sources claim talks brokered by South Africa have been going on in Harare for the last few days, our correspondent says, although Johannesburg denies involvement.
The sources say Mr Tsvangirai's victory was so overwhelming that Mr Mugabe would have no chance of victory, even in a run-off.
But our correspondent cautions it is in the opposition's interests to talk up the possibility of Mr Mugabe's exit and the claims are difficult to verify at the moment.
Bright Matonga, Zanu-PF's Deputy Information Minister, denied any talks were going on with the opposition.
"There are no discussions, no negotiations, and President Mugabe will not be going on state television to announce anything because there's nothing to announce."
Earlier, there had been increasing speculation that a second round vote would be needed, as no candidate had yet passed the 50% threshold required for victory.
The MDC says that Mr Tsvangirai won 60% of the vote, against 30% for Mr Mugabe.
Parliamentary results released so far show that the MDC has 72 seats, including five for a breakaway faction of the party, against 68 for Zanu-PF, with 70 still to come.
As he cast his vote on Saturday, Mr Mugabe said:
"If you lose an election and are rejected by the people, it is time to leave politics."
Neither Mr Mugabe nor Mr Tsvangirai have been seen in public since the election.Original here
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