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Kenya's President Mwai Kibaki and opposition leader Raila Odinga have reached a deal to end Kenya's post-poll crisis, ex-UN head Kofi Annan says.
"We have come to an agreement of a form of coalition government," Mr Annan said after a four-hour meeting with them.
He said he could not give any further details as the men were going to consult with their political parties.
Mr Annan said he expected them to sign a deal later on Thursday, when further details would be announced.
Some 1,500 people died in political violence after Mr Odinga said he was robbed of victory in December's polls.
International observers agreed the vote was flawed.
'Significant'
Discussions have centred on the creation of the post of prime minister, which would be taken by Mr Odinga, to set up a power-sharing government.
Both sides have previously agreed to create a prime minister but have differed on what powers the new post would have.
The BBC's Adam Mynott in the capital, Nairobi, cautions that this is not the first time there a deal has been announced between the government and Mr Odinga's Orange Democratic Movement (ODM).
But he said that Mr Annan is giving the impression that this is a significant development.
He says it has been an up-and-down negotiating process, which has already lasted more than a month.
Violence has mostly receded but our correspondent says tensions are still running extremely high.
Legal challenge
Local media report that professionals, traders and politicians are currently raising funds to arm groups that would protect their communities in the event of violence when the talks collapse.
A report by the International Crisis Group think-tank published last month said that both government and opposition officials were mobilising youths to carry out fresh attacks.
The post-election violence saw thousands of people targeted because they belonged to ethnic groups seen as either pro-government or pro-opposition.
About 600,000 people have fled their homes and some have been forced back to their ancestral homelands.
Donor countries have warned they will impose sanctions on any politician seen as blocking a deal - threats condemned by the government.
Meanwhile, a politician has lodged a legal challenge to the ongoing talks, saying they were unconstitutional and do not involve all Kenyans.
Antony Kirori, who vied for a parliamentary seat and lost to Mr Odinga, says any resolution would alter the country's governance structure.
Source: bbc
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