SANAA: President Ali Abdullah Saleh said on Friday he was ready to cede power to prevent more bloodshed in

Western countries are alarmed that al Qaeda militants entrenched in the Arabian Peninsula country could exploit any chaos arising from a messy transition of power if Saleh, a pivotal US and Saudi ally fighting for his political life, finally steps down after 32 years in office.

"We don't want power, but we need to hand power over to safe hands, not to sick, resentful or corrupt hands," Saleh said in a rousing speech to supporters shown on state television as tens of thousands of his foes rallied elsewhere in the capital Sanaa.

Thousands of Saleh supporters in Sanaa were also out early on the streets for what they dubbed on "Friday of Tolerance", with banners saying "No to chaos, yes to security and stability." Some were carrying guns and traditional Yemeni daggers, others were wavings flags and playing patriotic songs.

"We are ready to leave power but only for safe hands," Saleh said. "We are against firing a single bullet and when we give concessions this is to ensure there is no bloodshed, we will remain steadfast and challenge them with all power we have."

Protesters encamped in their thousands outside Sanaa University for six weeks declared on Friday a "Day of Departure" when they hoped to bring hundreds of thousands onto the streets in a further attempt to oust Saleh, a serial survivor of civil war, separatist movements and militant attacks.

Similar mass protests on March 18 left 52 people died, apparently gunned down by plainclothes snipers.

That bloodshed prompted a string of generals, diplomats and tribal leaders to abandon Saleh, severely weakening his position.

"The government cannot just shoot its way out of this crisis," Philip Luther, Amnesty's Deputy Director for the Middle East and North Africa, said in a statement.

"Whether in uniform or in plainclothes, security forces must be immediately stopped from using live ammunition on unarmed protesters."

The Wall Street Journal reported on Thursday that Saleh and top general Ali Mohsen the most significant of this week's defectors were hashing out a deal whereby both men resign within days to allow a civilian transitional government.

A spokesman for Saleh denied the report but said Saleh had held a meeting over the past 48 hours with the general.

"Ali Mohsen clarified why he did what he did and requested assurances that nothing would happen against him," Ahmed al-Sufi said.

Saleh was defiant in a speech on Thursday, offering only an amnesty to defecting troops at a meeting with commanders.

Soldiers loyal to Mohsen fired in the air later on Friday to prevent a crowd of Saleh supporters from reaching the anti-government protest where tens of thousands were rallying.

Security was tight, as the army conducted five separate checks on people entering the zone on Friday morning.