The PAD's announcement, which was made before Thaksin's own announcement at 8pm last night that he would step down, was in response to a televised address on Monday night in which Thaksin said he would step down as premier if the PAD stopped demonstrating against his government.

"We are more than ready to stop our rallies if Thaksin does what he said [he would do] on Monday," PAD spokesman Suriyasai Katasila told a press briefing that was also attended by PAD leaders Chamlong Srimuang and Pipop Thongchai.

 Meanwhile the opposition parties that boycotted the election will support Prime Minister Thaksin Shinawatra's proposal to create unity in the country, the Democrat Party's leader said yesterday.

Speaking before Thaksin made his announcement, Abhisit Vejjajiva said the Democrats accepted Thaksin's offer to resign if they agreed to participate in the next election following the implementation of political reforms.

"While the most important goal is to defuse the political tension, the prime minister should make an official announcement as soon as possible as it will be the first step to that purpose," Abhisit said.

In his first interview after Sunday's election, Thaksin proposed a reconciliation committee to break the deadlock. The independent panel would include representatives from political parties and the public. A neutral figure would be at its core, he said.

Somkiat Pongpaiboon, a PAD leader rejected the proposal, saying the PAD will not be lured into a trap.

Somkiat said that the PAD will be wary of any proposal from Thaksin because it believes he had ulterior motives when he suggested there were four candidates suitable to be PM. It believes only General Suchinda Kraprayoon, General Chavalit Yongchaiyudh and Ukrit Mongkolnawin could be considered to be apart from the political crisis.