Madagascar's President Marc Ravalomanana has said he would consider holding a referendum on his leadership to bring an end to the months of political crisis.
He told his supporters at a rally in the capital Antananarivo that he had nothing to fear from following democratic processes.
Mr Ravalomanana's rule has been challenged by opposition leader Andry Rajoelina (right), who emerged from more than a week in hiding on Saturday to address a rally in the capital.
Mr Rajoelina, a former DJ and the sacked mayor of the capital, had threatened to lead a march on the presidential palace if the president did not step down.
His orange-clad supporters cheered as he gave Mr Ravalomanana an ultimatum to quit within hours, but the deadline came and went without incident.
Mr Rajoelina's quick fire personality has earned him the nickname TGV by his supporters, after the French high speed train.
Weeks of unrest has left some 100 people dead on the Indian Ocean nation and severely damaged its important tourism industry.
Some elements within the Madagascar army have mutinied and backed the calls for the president to stand down. The US ambassador has warned the country is at risk of civil war if the crisis continues.