Anti-government protesters called off talks with the Thai government Saturday, moments after the prime minister rejected their calls to dissolve Parliament in 30 days and call an election.
The stalemate raises doubts about whether the two sides will be able to negotiate a peaceful end to a sometimes-violent protest that has left dozens dead, hundreds wounded and paralyzed the capital's financial sector.
The protesters, known as Red Shirts, called on Prime Minister Abhisit Vejjajiva Friday to disband the legislature and call elections to bring an end to his government, which they claim came to power illegitimately.
But on Saturday, Thai PBS television quoted Vejjajiva as saying he has rejected the protesters' proposal.
Nattawut Saikua, a top Red Shirt leader, said the negotiations "will stop" now that the protesters' demands have been rebuffed.
"We will not talk anymore," Saikua said.
In the wake of Vejjajiva's comments, the protesters vowed to maintain their occupation of Bangkok's financial and shopping sectors, giving the impression their standoff with government security forces may go on indefinitely.
Thousands of Bangkok residents, weary from the months-long demonstrations and resulting disruptions, gathered at a park Saturday to call for an end to the protest.
One sign at that protest read: "Please stop the mob -- I want a normal life."
While the protests have largely been peaceful, violence has erupted between both sides that has left 26 people dead and nearly 1,000 others wounded.
On Thursday, five grenades exploded near an area where anti-Red Shirt protesters had gathered, killing one person.
CTV's South Asia Bureau Chief, Janis Mackey Frayer, said Saturday that the Red Shirts had promised to clear the streets only if the government agreed to its demand to dissolve Parliament and call elections.
There are fears that the violence could increase should the government choose to retaliate against the entrenched protesters, she said.
"There has been a lot of fear and certainly a lot of anxiety that this is going to lead to a confrontation," Mackey Frayer told CTV News Channel in a telephone interview from Bangkok. "But there are mixed messages at this point as to what the government's next move might be."
Red Shirt leaders had said they engaged in unofficial talks with the government on Wednesday and Friday and believed they had made some progress.
The movement largely consists of rural supporters of former prime minister Thaksin Shinawatra who oppose the military coup that ousted him from office in 2006.
The Red Shirts have become a highly organized political movement over the course of the protests, Mackey Frayer said.
"The support for the Red Shirts was drawn from rural areas and it's growing in rural areas," she said.
"So the sense is that both sides in this standoff are going to have to concede something because even if the government does win this particular round, the Red Shirts have gained such momentum that they will be a political force and a political body that the government can't ignore."
Witnesses take to Twitter
Witnesses to the protests in Bangkok have taken to social networking site Twitter to report what they are seeing and hearing.
A tweet posted by user sp_onthespot late Friday night reported that "10 hotels are closed because of the protests. Mine fortunately not."
On Saturday, the same user said the city was relatively calm, but had heard from a Red Shirt leader that "30,000 Thai soldiers are heading to the area of the protest."
A Twitter user named philipbkk reported late Saturday that "Bangkok is a bit dangerous now. Hope things ease out soon."
In earlier Tweets, philipbkk bemoans the traffic in the city, while others post photographs of protesters in parks and in the streets.
With files from The Associated Press
