Zimbabwean President Robert Mugabe may be retiring in exile in Malaysia under a potential power-sharing deal between the African country's ruling and opposition parties to stave off famine and economic collapse.

According to several South African press reports, ongoing negotiations between two top officials in Mugabe's Zanu PF party and Zimbabwean opposition party Movement for Democratic Change (MDC) have included the "critical element" of Mugabe's resignation.

The Cape Town-based News24 said today that the British government the former colonial ruler which continues to take a strong interest in Zimbabwe's affairs had reached a tentative agreement with Malaysian authorities to grant Mugabe and his family political asylum.

In the report, MDC leader Morgan Tsvangirai was quoted as saying that Mugabe is likely to "go outside the country (Zimbabwe)" as he could feel "insecure" after stepping down. However, it is not known when any such resignation would take effect.

The unprecedented negotiations between the Zimbabwean parties came about following "deep dismay" within the ruling party over the deterioration of country's economy as a result of several poorly planned economic policies over the past decade.

Aside from fuel shortages, triple-digit inflation and collapse of state infrastructure, the country is now poised to face a famine which could affect more than half of its 11 million population.

PM's close ally

Contacted about the reports, Foreign Affairs Ministry Africa desk official Rafidah Aziz said the ministry has not received any information concerning the purported retirement arrangement for Mugabe.

"As of now, we have not got any information concerning that," she said.

According to the official, Mugabe's last state visit to Malaysia took place in August 2002 when the African leader attended a Malaysia-Africa dialogue in Langkawi.

The African leader is known to be a close ally of Prime Minister Dr Mahathir Mohamad.

Immunity for Mugabe

Elaborating on the power-sharing deal, Tsvangirai was reported as saying that he would be willing to consider immunity for Mugabe should the power-sharing deal materialise.

"We have reached the stage where, if Mugabe is a stumbling block to the solution and for the negotiations to move forward the people are asked to sacrifice giving him immunity, let it be," he was quoted as saying by News24 .

The opposition leader was also quoted as saying that the power-sharing deal on Mugabe's retirement would involve a transitional two-year term during which the country would be ruled jointly by Zanu-PF and the MDC. Elections are expected to be held after this period.

The change in Mugabe's fortunes came barely a year after the Zimbabwean leader was re-elected as president in a controversial election last March.

Despite staying in power, the beleaguered president has been unable to resolve deep economic crises stemming from a widely-criticised land redistribution programme which greatly affected the country's commercial agricultural output.

Bank Negara link

Meanwhile, another South African daily, the Business Day , reported last month about another Malaysian link to Zimbabwe's economic quagmire.

In a Dec 19 report, the newspaper said that Zimbabwe's fuel crisis was expected to deepen amidst revelations that all main oil suppliers to the country have stopped deliveries because of the government's failure to pay up.

The report also revealed that two of Zimbabwe's major financiers are Bank Negara and the Libyan Arab Foreign Bank.

However, attempts to contact a spokesperson for Bank Negara for further details were unsuccessful.