Outgoing Ukrainian President Leonid Kuchma, bowing to mass street protests and international pressure, has backed a new presidential election to end a crisis that is tearing the nation apart.
"If we really want to preserve peace and consensus and build this just democratic society, of which we speak so much but have failed to carry out in a legal way, let us have new elections," Mr Kuchma said in a statement.
Mr Kuchma signalled a shift in his position away from backing his ally, Prime Minister Viktor Yanukovich, as the official winner of the November 21st poll, as the Supreme Court sat to try to resolve the election stalemate.
His comments marked a concession to liberal presidential challenger Mr Viktor Yushchenko whom he has attacked for bringing tens of thousands of supporters out on to the streets with his charges that he was cheated out of the election by mass fraud.
Mr Kuchma said he himself would not run in any new poll. By referring to a new poll, it suggested that Mr Kuchma wanted a completely fresh set of elections and not simply another run-off between Mr Yanukovich and Mr Yushchenko.
Mr Yushchenko says he wants a repeat only of the second round run-off, which Mr Yanukovich officially won. Mr Yanukovich earlier also gave ground, agreeing to a new vote in two eastern regions - Donetsk and Luhansk, both his strongholds - if the charges of mass fraud were proven.
Though big neighbour Russia has back pro-Moscow Mr Yanukovich through the crisis, the elections drew condemnation in the West for wholesale cheating and the European Union has advocated new elections.
Mr Kuchma made his statement to regional leaders, with Mr Yanukovich present, after speaking by telephone with Dutch Prime Minister Jan Peter Balkenende and US Secretary of State Colin Powell.
Both have criticised the last poll. Eastern regions of the country largely backing Mr Yanukovich and furious at the opposition rallies in the capital have been threatening moves to autonomy, bringing fears of a breakup of the country.
The Supreme Court, the building ringed by thousands of Yushchenko supporters sporting their trademark orange colours, held a first full day considering a complaint by the Yushchenko camp over the run-off.
But legal experts said the country's top court was unlikely to be able to satisfy either side in the dispute. One even said their findings might hinder a solution. Court officials said its red-robed judges could be deliberating up to several days. Modern Ukraine does not have a tradition of an independent judiciary but Supreme Court judges have in the past been prepared to rule against the authorities.
Mr Kuchma, in power for 10 scandal-tainted years, earlier warned that the mass protests paralysing public life could make the financial system collapse "like a house of cards".