Article published on the 2009-10-20 Latest update 2009-10-20 10:02 TU
Arias' plan suggests the reinstatement of Zelaya as Honduran president until an elected successor takes office. Zelaya has rejected the offer on the grounds that Micheletti has not acknowledged that he took power in a coup d'etat last June.
The negotiating stalemate could now come before the Permanent Council of the Organisation of American States, which is due to meet in Washington on Wednesday.
Despite pressure to achieve a solution before elections scheduled for 29 November, both sides expressed pessimism about the state of negotiations.
Zelaya has been holed up in the Brazilian embassy in the capital, Tegucigalpa, for five weeks since his surprise return to the country.