Zimbabwe's main opposition leader said Wednesday that his party was willing to hold discussions with the ruling party to pave the way for President Robert Mugabe to leave power smoothly.

Movement for Democratic Change (MDC) leader Morgan Tsvangirai said his party had mapped out a way "to ensure a smooth exit" of Mugabe from power and to ensure that the southern African country moves to a "post-Mugabe era".

There has been widespread speculation that the 79-year-old Mugabe might leave office after he hinted in an interview last week that he was "getting to a stage" where retirement might be possible.

The Zimbabwe government has dismissed the speculation, insisting that Mugabe will not leave office until his current mandate expires in 2008.

"The only way to resolve the current crisis... is through a process of serious and sincere dialogue between the MDC and ZANU-PF," Tsvangirai said in a statement issued Wednesday.

Relations between the government and the MDC are at a low point following a national strike last week over massive petrol price increases and the suspension of Harare's opposition mayor on Tuesday.

"The MDC has five key points to ensure that this country moves to a position of post-Mugabe era," Tsvangirai said in separate comments to reporters.

He said that his party's solutions to Zimbabwe's current economic and political crises emphasised negotiation, but insisted talks had to take place in a "peaceful environment".

"Without dialogue, without negotiation this country is doomed," Tsvangirai told reporters at a press conference held ahead of May Day celebrations on Thursday.

He said the "way forward" for the country's workers -- who form a key constituency of the MDC -- also included national efforts at confidence-building in the country's democracy and engaging international support.

Tsvangirai lost a presidential election to Mugabe in 2002, and is due to petition the result in court - Sapa-AFP