Pakistan's exiled former Prime Minister Benazir Bhutto has said she is moving closer to clinching a power-sharing deal with embattled President Pervez Musharraf.
Ms Bhutto is holding talks with President Musharraf's representatives in London where she is living in self-imposed exile.
The former Prime Minister has demanded a commitment from President Musharraf to quit as army chief and become a civilian president as a condition for any deal.
A cabinet minister said the issue of the President's leadership of the military has been resolved and a statement will be made soon.
President Musharraf, whose popularity has plummeted in recent months, aims to get re-elected president for another five years between mid-September and mid-October, before his term as army chief expires at the end of the year.
The Supreme Court last week added to pressure on Mr Musharraf to agree terms with Ms Bhutto, by ruling that Nawaz Sharif, the prime minister Mr Musharraf overthrew in 1999, could return from exile in London.
Mr Sharif, who has allied himself with conservative religious parties, is consulting his aides in London and will announce the date of his return tomorrow.
Speculation is rife that Benazir Bhutto will also seek an early return to offset backing for Mr Sharif, who has earned public support for his refusal to negotiate with a military president.
Western governments are closely following the political turbulence in Pakistan, a nuclear-armed state whose support is critical to fighting al-Qaeda and crushing a Taliban insurgency in Afghanistan.
