Honduras' de facto government said on Wednesday that plans for ousted President Manuel Zelaya to leave his refuge in the Brazilian Embassy and fly to Mexico had been aborted for the time being.
If Zelaya leaves Honduras it will end his hopes of returning to office and seal a victory for the coup leaders who overthrew him in June.
A politician close to Zelaya had said the toppled president would leave the country on Wednesday and a Mexican government source said he was going to arrive in Mexico.
But negotiations over Zelaya's exit bogged down because of disagreement over whether he would accept political asylum in Mexico.
"It's aborted under current circumstances," the pro-coup government's foreign minister Carlos Lopez told Honduran television.
Soldiers grabbed Zelaya from his home on June 28 and threw him out of the country in his pajamas, sparking Central America's worst political crisis since the Cold War.
De facto leader Roberto Micheletti who took his place has defied world pressure to reinstate Zelaya, dividing the impoverished nation and provoking an international aid freeze. Zelaya took refuge in the Brazilian embassy in Tegucigalpa, from where he has been demanding his reinstatement.
Honduran Congress voted last week not to allow him to finish his term that ends in January.
Request for asylum"
The de facto administration wants Zelaya to take political asylum in another country, which would restrict his activities.
But Zelaya has rejected asylum in favor of a looser status that would allow him to campaign fully for his return.
He told Honduran radio he wanted to go to Mexico as a guest but "in no way is this a request for asylum or a request to give up the post I hold."
Opposition candidate Lobo won the presidential vote on Nov. 29 but regional power Brazil has said it does not recognize the election because it was organized by a de-facto government. But it has since signaled it may consider Lobo's victory as separate from the coup and potentially legitimate.
Lobo is to take power in January.
Extra police beefed up security at the Brazilian Embassy on Wednesday night and a group of Zelaya supporters carrying banners arrived at the building.
Earlier on Wednesday, U.S. Secretary of State Hillary Clinton said November's election "marked an important milestone" toward restoring democracy but was not the final step under a deal between Zelaya and de facto leaders who took over after the coup.
Even, Clinton lauded president-elect Lobo for working to achieve "national reconciliation" and calling for the formation of a national unity government and a truth commission as agreed.
But, Lobo, said on Tuesday he wants political amnesty for all those involved in the coup.
"There must an amnesty for all," Lobo said.
Zelaya has also rejected the elections as a sham.