Yemen President Ali Abdullah Saleh has said he would only hand over power to 'safe hands', in a defiant speech to supporters, after talks with a top defector failed to defuse the political crisis.
'We will stand firm ... steadfast in the face of all challenges,' Mr Saleh told vast crowds in the capital Sanaa.
'We don't need power. We need to hand it over to safe hands, and not to corrupt and hateful hands ... You are the ones who will be handed power,' he said.
With Yemen's political system in crisis, tension is high and security forces are out in large numbers amid fears of a repeat of last week's violence that cost more than 50 lives.
The president, whose concessions and offers to stand down early have been snubbed by the opposition, renewed his invitation for youths at the forefront of the protests to join a dialogue.
'I am ready to talk to you and to form a political party for the youths,' said Mr Saleh, 69, who has ruled Yemen for more than 30 years.
In behind-the-scenes talks aimed at averting more bloodshed, Mr Saleh and top dissident General Ali Mohsen al-Ahmar failed to reach a deal last night.
General Ahmar, a regional army commander who has vowed to defend the protestors, is leading efforts to form a transitional council grouping all sides.
With hundreds of thousands of rival demonstrators on Sanaa's streets today, soldiers fired warning shots to prevent any clashes. There are no reports of casualties at the demonstrations.
Tens of thousands of people also demonstrated against Mr Saleh in the port city of Aden, as well as in the southern provinces of Shabwa and Lahij.
The rallies followed the violence in Sanaa on 18 March when 52 protestors were gunned down by Saleh loyalists.
