At the meeting, Thaksin hesitated but said he would consider the suggestion and would give Chavalit an answer later, the PAD leader said, adding that Chavalit had already told Privy Council president Prem Tinsulanonda of his meeting with Thaksin.

Appearing to be in a good mood, Thaksin laughed off rumours suggesting he had written a resignation letter at Government House yesterday morning and declined to comment further.

"The current political situation will gradually ease now, despite the PAD's deadline tonight. Some of the PAD leaders will tomorrow register for the Senate election so they will issue their last campaign words before registering," Thaksin said.

He denied he would declare a state of emergency.

Thaksin said Cabinet secretary-general Borwornsak Uwanno had asked him to do his best to ease the political tension, but denied Borwornsak had suggested he resign.

The PAD yesterday set the stage for the next phase of protests by calling for a mass rally tomorrow to petition for royal intervention to appoint a prime minister to replace Thaksin.

"Only the royal benevolence of His Majesty the King, to bestow a prime minister, can end the political crisis," anti-Thaksin campaigner Sondhi Limthongkul said, reading a PAD statement to crowds of protestors.

Sondhi said the protests had to intensify further because Thaksin has been stubborn and has clung to power, even placing the country's future in peril.

"Despite nonstop protests since February 4, Thaksin has refused to quit and instead, tries to perpetuate his misrule by staging a snap election that lacks any legitimacy.

"The political turmoil, if allowed to persist, will result in ruin for the country and the April 2 election will drive a deeper wedge into society, leading to possible tragic consequences and cracks impossible to bridge," he said.

Sondhi said that to preempt economic ruin, it was necessary to petition His Majesty the King to bestow a new prime minister to initiate a round of political reforms and to purge the country of Thaksin's flawed leadership.

"The reforms are expected to steer politics away from domination by greed and excessive capitalism."

He said the royally-appointed prime minister would be in charge of setting politics on course as soon as possible and rectifying mistakes left behind by Thaksin. "These include negotiations to conclude certain free trade deals considered unacceptable by the public and the surrender of satellites, telecom frequencies and air waves to foreigners."

Government Spokesman Surapong Suebwonglee again denied yesterday that Thaksin would resign.

"Does that rumour still exist?" Surapong asked. "I can tell you that it's not true. I have just met Thaksin this morning. He looks fresh and relaxed after resting for a couple of days. He came to Government House to clear his work."

Due to concerns about the potential for violence at tomorrow's anti-Thaksin rally, Deputy Prime Minister Chidchai Vanasatidya yesterday chaired a meeting of security authorities in preparation for the event. Attending the meeting were the National Security Councils chief, General Winai Patiyakul, Police chief General Kowit Wattana and the National Intelligence Agencys chief Pol General Jumpol Manmai.

After the meeting, Kowit said there had been concern about reports suggesting that a third party may try to instigate disruptions tomorrow.

"We are very concerned that the situation may become chaotic. We believe there are some groups who want to manipulate the demonstration in order to create disruptions," Kowit said.

When asked to describe the kind of situation he was referring to, Kowit said: "Wait and see."

At the meeting, Chidchai ordered police to set up more checkpoints around Bangkok to help screen and block certain groups of people wanting to join the protest, a source said.

Police will also prepare back-up teams in case the situation turns violent.

Chidchai also recommended that police should oversee Saturday's protest to ensure it goes ahead peacefully.

"There are a lot of rumours that suggest the protesters might try to destroy public property, including telephone booths and traffic lights, in order to instigate disarray, in an effort to prevent the April 2 election from going ahead," the source said.

The security authorities are also concerned that Democrat Party supporters from the provinces, who are heading to Bangkok to attend the party's rally at Sanam Luang today, might stay longer to join the PAD rally tomorrow.

Thaksin plans to stay in Bangkok for the whole of next week to help with Thai Rak Thai candidates campaign for the snap election.

The prime minister returned to Government House yesterday after being absent from his office since March 10, when the PAD-led protesters besieged the compound.

He has also cancelled plans to visit the South next week, to spend time in Bangkok to concentrate on election campaigning.

His schedule next week will see him visiting each of his constituencies in Bangkok on Monday, Wednesday and Thursday evenings to speak to voters.

On Tuesday he will go to Government House for a cabinet meeting, while on Friday he will deliver a speech at Lumpini Park on the direction of Thai Rak Thai Party. On Saturday he plans to make his final campaign appearances before Sunday's election.