Pakistan President Pervez Musharraf Saturday refused to lift immediately the emergency rule as he met US Deputy Secretary of State John Negroponte, officials said.

"The US diplomats expressed concern over the existing political instability in Pakistan and asked President Musharraf to take certain measures to calm down the opposition forces," a Pakistani presidential official said.

Among the proposed measures were the immediate lifting of the state of emergency, Musharraf's resignation of his post as chief of the army and the holding of free and fair elections on schedule.

But the army general, who took over in a bloodless coup in 1999, said he was trying his best to revoke the emergency as soon as it was possible but could not give any date, said the official, who spoke on condition of anonymity.

The emergency rule was helping government to fight against "menace of terrorism and extremism," he said, adding that the general elections would however be held before January 9, as he has pledged.

The official said Negroponte also urged Musharraf to avoid "confrontation" with the country's moderate forces such as the liberal opposition leader Benazir Bhutto, saying such confrontation "would only strengthen extremist forces."

"But the president made no promise on the issue," the official said, without explaining further.

The Washington has previously encouraged a power-sharing deal between the two leaders, believing support from the country's largest political party would aid Musharraf in his fight against rising Islamic militancy and maintain stability in the nuclear-armed country.

However, Bhutto suspended all contact with Musharraf, an army general who took over in a bloodless military coup in 1999, after Musharraf imposed emergency rule and suspended the constitution on November 3, saying the measure will reinforce his efforts against militancy.

The opposition workers, lawyers, students and rights activists rejected the move and took to the streets nationwide, saying the state of emergency was only aimed at sacking the top judiciary set to rule against Musharraf's controversial October re-election.

Two-time prime minister Bhutto has vowed to unite all opposition parties in what she calls her struggle against "military dictatorship."

Disturbed by the prospect of political turmoil going out of control, the US administration, which has cautiously criticized Musharraf for imposing authoritarian rule, is now trying to revive his power-sharing accord with Bhutto.

The US envoy held talks on Friday evening with the army general's close aide Tariq Aziz, who had played a key role in the deal with Bhutto.

He also spoke with Bhutto by phone, hours after she was released from four-days house-arrest in eastern city of Lahore.

In the conversation, Mr Negroponte reiterated "the importance of moderate forces working together in Pakistan," State Department spokesman Sean McCormack told a briefing in Washington.

Getting moderate forces together was "for a better future for Pakistan and also to get Pakistan back on the pathway to constitutional rule," he added.

It was not clear if the US official could convince Bhutto to resume talks with Musharraf, particularly when she has repeatedly ruled out such a possibility.

"There is no time left to start a new dialogue. Instead, the general should hand over power to a neutral government of national consensus to organize fair and transparent elections," she told reporters on Friday, adding that fair elections were not possible under Musharraf.

The military leader adopted a taunting tone when he spoke about the opposition leader in an interview with British Broadcasting Service on Friday night.

The general said she was "the darling of the West" but "she would not like to go into an election because her party is not in a state to win at all."

"Therefore, I will certainly go for the election, in spite of any agitation by her. We will not allow her that," Musharraf said.

Amid growing international pressure, Musharraf pledged to hold a general vote on schedule in early January. He also appointed a caretaker government yesterday to oversee the process.

But the opposition leaders, including Bhutto, have rejected the move saying it comprised of the supporters of the ruling Pakistan Muslim League-Quaid.