The delegations of the current incumbent Roberto Micheletti and the ousted president Manuel Zelaya reportedly reached partial agreement on a proposal submitted by Costa Rican President Óscar Arias. His proposal involves the formation of a government of national unity, and allowing the elections scheduled to be held at the end of next month to go ahead as planned. However, the delegations are still at odds about who is to lead the transitional government. Talks on the issue will continue on Wednesday.

Manuel Zelaya is demanding his reinstatement as president, but this is unacceptable to Roberto Micheletti. Mr Zelaya was ousted and expelled from Honduras at the end of June. Mr Micheletti took over the presidency, but no foreign government has recognised his regime. Manuel Zelaya has been holed up in the Brazilian embassy in Tegucigalpa since his illegal return to Honduras at the end of last month.