Yemeni President Ali Abdullah Saleh recently made a new offer to protesters demanding his ouster, proposing he stays in office until elections were held but transferring his powers to a caretaker government, an opposition source said. Meeting on Tuesday night, he made his new offer to Mohammed al-Yadoumi, head of the Islah party.

This was the first time that President Saleh had dealt with Mr. al-Yadoumi, once partner in his government, an opposition spokesman said. An opposition source said of the offer that the opposition could pick a head of government of its own choosing and there would be parliamentary elections by the end of the year.

He added that the opposition was still considering its response. Series of protests by many thousands in Sanaa and other cities have sent Mr. Saleh’s 32-year rule to the brink of collapse, but Saudi Arabia a key Yemen financer and the United States, are worried over who could succeed their ally. Mr. Saleh has long been regarded as a bulwark of stability who can keep Al Qaeda from extending its foothold in the Arabian Peninsula country.

US officials have openly said they like working with Mr. Saleh has allowed unpopular US air strikes in Yemen against Al Qaeda and Mr. Saleh has said that the US ambassador in Sanaa is involved in talks to find a solution. It is feared that any agreement between Mr. Saleh and the parties could run into trouble from another party, the Yemeni protesters.

On Wednesday a coalition of protester groups calling themselves the Youth Revolution issued a statement, saying they would not leave the large public space near the Sanaa University until President Saleh and his allies were removed from power.

It said a temporary presidential council comprising of five individuals known for experience and integrity should run the country for an interim period (of six months), adding the council should appoint a technocrat to form a caretaker government.

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