HARARE : Zimbabwe's political rivals were still deadlocked Saturday on the make-up of a new government after failing to agree on the allocation of key portfolios in talks here.

President Robert Mugabe, opposition Movement for Democratic Change (MDC) leader Morgan Tsvangirai and Arthur Mutambara, the head of a small MDC offshoot, met in the capital Harare but the talks broke up without an agreement on the allocation of the finance and home affairs cabinet posts.

Negotiators for the three parties will meet again over the posts, Mugabe's spokesman George Charamba said.

The continued failure has blocked the formation of a unity government ever since a historic power-sharing deal was signed on September 15.

"The president and the two leaders of the MDC formations met this morning in consultation over the setting up of government, but failed to conclude their consultations," Charamba said in a statement.

"They however decided that they should be further consultation at the level of their negotiating teams exclusively over the ministries of finance and home affairs."

MDC spokesman Nelson Chamisa told AFP the parties had "a frank and realistic" exchange but the allocation of the ministries was still deadlocked. He confirmed consultations would continue.

Chamisa said the situation in Zimbabwe was "catastrophic" and the continuing delay in forming a government "is a threat to people's lives".

"We hope that things will be resolved soon but the delay is a threat to people's lives. People are dying... the humanitarian response has to be activated and you need a functional government to do that," Chamisa said.

Mutambara's spokesman Edwin Mushoriwa said the discussions were inconclusive and the unresolved issues were back with negotiators.

"The negotiators are meeting to try and panel-beat the issues that have been left. The principals (the three leaders) understand the urgency of this matter that it has to be concluded."

Once one of Africa's most prosperous countries, Zimbabwe now suffers the world's highest rate of inflation, last estimated at 11.2 million percent, leaving 80 percent of the population living in poverty.

A source close to the negotiations said Tsvangirai and Mutambara had discussions before meeting Mugabe to come up with a joint position. The pair also met again after the talks failed.

The South African government said Friday that former president Thabo Mbeki, who brokered the power-sharing deal, had agreed to resume his mediation to resolve the deadlock.

Under the South African-brokered September 15 deal, Mugabe will remain as head of state after nearly three decades in power while Tsvangirai is to take up a new post of prime minister and Mutambara will be a deputy prime minister.

The deal was heralded as an historic initiative to resolve Zimbabwe's political deadlock and economic melt-down, but the deadlock over cabinet seats remains.

- AFP /ls