Robert Mugabe's Zanu (PF) party has convened a meeting of its ruling politburo for tomorrow which analysts and diplomats say could lead to a breakthrough in Zimbabwe's election deadlock and even a "peaceful" handover of power.

The opposition Movement for Democratic Change (MDC) has already grabbed control of parliament from Zanu (PF) after Saturday's elections and claims that its leader, Morgan Tsvangirai, has ended Mr Mugabe's 28-year reign as President.

But there has been no official results yet from the presidential contest and aides of Mr Mugabe insist in public that the 84-year-old is ready to fight in a run-off vote.

Zanu (PF) officials said that tomorrow's meeting of the 49-strong politburo would discuss the election results. Analysts predicted that it might be asked, too, to endorse the formula negotiated behind the scenes over the past week to give Mr Mugabe a face-saving exit.

"Winning is no longer an option, that is now accepted by most of the ruling clique," a prominent regional political analyst said.

A source close to the talks, facilitated by the South African President Thabo Mbeki, said that the MDC had been "reminded of the need to offer some face-saving formula to Mugabe."

"The fact is most people now think Mugabe will step down and Tsvangirai will become the next president," the source added. "The situation is very delicate but overall everyone is optimistic which augurs well for the final outcome, whatever that deal is."

Earlier today, Mr Mugabe today made his first public appearance since casting his vote last Saturday.

Zimbabwean state television showed footage of a smiling Mr Mugabe meeting election observers from the African Union, including President Ahmed Tejan Kabbah of Sierra Leone.

Mr Kabbah headed the African Union mission which monitored the joint parliamentary and presidential elections held on Saturday.

Mr Kabbah said that the 84-year-old Zimbabwean leader appeared relaxed during their meeting. "He looked very relaxed. He is of the view that the problems facing the country will be resolved amicably. He hopes the rest of the results will be forthcoming," he said.

He also played down criticism from Western governments and from the Opposition over the delay in announcing the results.

"We discussed the fact that Zimbabwe is leading the world in terms of elections ... It’s the business of the people of Zimbabwe to decide whom they want," Mr Kabbah said.

The Sierra Leonean leader also revealed that he had met Mr Tsvangirai who "had some good words to say about the President".

Zanu (PF) officials, and the state media, continued to talk up the likelihood of an election run-off. Bright Matonga, Deputy Information Minister, said that Mr Mugabe was in no mood to step aside.

"Zanu (PF) is ready for a run-off, we are ready for a resulting victory," said Mr Matonga, himself a leading Zanu (PF) MP.

He said that the party had "let the President down" in the first round and had not diverted enough energy into its campaign.

"In terms of strategy, we only applied 25 per cent of our energy into this campaign ... That (the run-off) is when we are going to unleash the other 75 per cent that we did not apply in the first case."

The Electoral Commission wrapped up final results of the parliamentary contest in the early hours, giving the MDC 109 seats against 97 for Zanu (PF). The situation is slightly complicated by a split in the MDC ranks, with ten of the newly-elected lawmakers part of a rebel faction.

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