They can't both be right. Ousted Honduran President Manuel Zelaya says a deal that could have returned him to power is defunct. Roberto Micheletti, who took power after a coup, says the same deal has been successfully accomplished.

The Obama Administration, caught in the middle of a power struggle in this tiny Central American nation, was urgently pressing Friday for the survival of an accord it hailed as "a historic victory for democracy."

"No, it's not dead, but maybe sleeping for the time being," said State Department press spokesman Fred Lash.

A senior State Department official said the stakes are high and time is short.

"If the parties let this fall apart you're going to see problems with international recognition of the elections," the official said, insisting on speaking anonymously due to the sensitive nature of the discussions.

Micheletti's backers hope a clean vote for a new president will force the world to accept that politics has returned to normal in Honduras. Zelaya's backers accuse the coup-installed officials of trying to delay his return to power _ at least until the election.

Honduras, one of the poorest nations in the hemisphere, plunged into political crisis four months ago when Zelaya was forced out of bed in his pajamas and flown to Costa Rica. He sneaked back into his country on September 21, and has been holed up in the Brazilian Embassy ever since under threat of arrest.

With a presidential election just three weeks away, the U.S. and the rest of the international community _ which cut off most foreign aid and diplomatic ties after the coup _ are urgently seeking a resolution.

But the key players seemed less inclined to find common ground.

"The negotiations have come to an end," Zelaya, who huddled with supporters, told The Associated Press. "We have declared that there is no possibility of recognizing that accord."

Last week's accord called for a national unity government with backers of both sides to oversee elections. Congress would decide whether to reinstate Zelaya _ and the ousted leader had assumed that would happen.

Micheletti negotiator Vilma Morales said the interim government does not consider the accord broken and plans to continue implementing it.

"Each of the negotiators signed each one of the points that were agreed and it is our responsibility to fulfill what was agreed," Morales said. "We have to continue complying with it."

Meanwhile, Hondurans went back to work as normal and streets were busy with shoppers and traffic, but many were uneasy about what might come next after Friday's setback on the accord.

Maria del Carmen Altamirano, a 60-year-old housewife, said she is afraid the country might spiral into violence.

"I can't sleep, thinking that there is a war coming, that we'll have a civil war," Altamirano said. "Neither one of them wants to give in. They are both arrogant and are not thinking about the people's suffering because all they care about is power and money. What I want is to leave this country, but I'm too poor and don't have the money."

Javier Padilla, a 52-year-old insurance salesman, said he doesn't support Zelaya but believes his return would bring peace back to the Central American country.

"The best way to end this problem is for Zelaya to return," Padilla said. Continued...