Official says Zimbabwe talks to resume soon

HARARE (Reuters) - Zimbabwean President Robert Mugabe is expected to meet opposition leader Morgan Tsvangirai in the next two days in another attempt to break a deadlock over cabinet posts, a senior ruling party official said on Monday.

The ZANU-PF official suggested Mugabe's patience was running out and a prolonged deadlock could endanger the negotiations. The two sides have been unable to agree on sharing out cabinet posts since an outline power-sharing deal on September 15.

"The expectation is that there is going to be some agreement so that the country moves forward, and it will be very unfortunate if there are people who think this process, that these consultations, can go on forever," said the official, who declined to be named.

The official would not say what action Mugabe may take if a deal was not reached soon.

"We are negotiating in good faith but I don't think you can say the same thing about ZANU-PF," said Nelson Chamisa, a spokesman for Tsvangirai's Movement for Democratic Change (MDC).

Mugabe will also meet Arthur Mutambara, leader of a smaller, breakaway faction of the MDC.

Mugabe, Tsvangirai and Mutambara met on Saturday and failed to settle differences over the finance and home affairs ministries in a new Zimbabwean government.

The opposition accuses Mugabe's party of trying to assign it a junior role in government and says only mediation can break a deadlock in talks.

Under the outline agreement, Mugabe will retain the presidency and chair the cabinet, while Tsvangirai heads a council of ministers supervising the cabinet.

Without a breakthrough, Zimbabwe's economy could worsen still further. The once-prosperous nation is crumbling under inflation of about 11 million percent -- the highest in the world -- and chronic food shortages.

Some economists say Zimbabwe's inflation rate is now over 40 million percent.

Zimbabweans have to queue for long hours, sometimes overnight, to withdraw money from banks where withdrawal limits have been imposed by the central bank.

(Editing by Michael Georgy)