Blah, who took over on Monday after former president Charles Taylor went into exile, was in talks with Sekou Damate Conneh, the head of the Liberians United for Reconciliation and Democracy (LURD) main rebel group and the smaller Movement for Democracy in Liberia (MODEL).

A west African official said the three sides were still discussing "who should hold which post in the new government," which is due to replace Blah's caretaker administration in October.

He said if an agreement was reached, a pact on the new government could be signed soon "maybe even on Saturday."

The departure of Taylor, who was the epicentre of two civil wars that raged almost continuously for 14 years, has been hailed as a sign that Liberia's cycle of violence may finally be at an end.

WAR.WIRE