Zimbabwe President Robert Mugabe and a faction of the country's opposition have reached a deal that would lead to the formation of a government, a ruling party official said on Tuesday.

"A deal has been reached between President Mugabe and MDC-Mutambara faction which has been signed in the presence of President Mbeki," the Zanu-PF official said.

"(Negotiators) are meeting right now trying to find the technical details of how the new government will be structured."

South African President Thabo Mbeki has been mediating power-sharing talks between Mugabe, opposition Movement for Democratic Change leader Morgan Tsvangirai and Arthur Mutambara, the head of a smaller MDC faction.

While the three leaders left Tuesday's talks earlier in the night, Mbeki remained with negotiators for Zanu-PF and Mutambara's faction, the official told AFP.

Tsvangirai's position was unclear, with the MDC leader exiting the talks without commenting.

Tuesday's meetings were a third day of power-sharing negotiations between the political rivals aimed at ending the country's protracted crisis.

The crisis intensified after Mugabe was re-elected in a June presidential run-off widely condemned as a sham.

Tsvangirai boycotted the election despite finishing ahead of Mugabe in the March first round, citing rising violence against his supporters.

AFP