Yemen’s opposition is said to be considering stepping up its protests after President Ali Abdullah Saleh refused to sign a deal handing over power.
The Yemeni leader reportedly agreed to sign only as head of the ruling party, not as president.
The deal was brokered by representatives of neighbouring Gulf states who came to the Yemeni capital Sanaa.
Under its terms, Saleh would have ceded power within a month in return for immunity from prosecution.
The negotiations coincided with more anti-government protests demanding the president’s immediate departure.
The main opposition group has accused Saleh of thwarting the deal. The agreement caused divisions within the opposition movement, with some wanting the president put on trial.
A longstanding ally of the US in the fight against al Qaeda, Saleh has ruled the impoverished Gulf state for 33 years.