Madagascan President Marc Ravalomanana said today he would submit to a 'referendum' to settle a deadly stand-off which has riven the island for months.
His rival Andry Rajoelina, guarded by troops, led prayers at a service in the centre of the capital, Antananarivo, attended by 3,000 of his backers.
Mr Rajoelina has promised fresh elections to decide who should run the country.
While the president's concession marked a first major shift in his position, he gave no details as to what type of poll he could agree to stage. Talks between the two sides ground to a standstill weeks ago.
The crisis intensified yesterday when the opposition claimed to have toppled the government and taken control of the army.
Mr Rajoelina set up a parallel administration last month as part of his strategy to destabilise the government.
The head of that parallel cabinet, Roindefo Zafitsimivalo Monja, occupied the official prime minister's office yesterday after the opposition took control of the building, accompanied by around 30 soldiers.
Mr Rajoelina later said 'It is I who commands the army today. They receive orders from Andry Rajoelina, and not only in Antananarivo, but throughout Madagascar.'
The army, however, said it would not intervene in the dispute, though chief of staff Colonel Andre Andriarijaona said his forces could end up supporting the opposition 'if it would restore calm.'
