The Reuters news agency is reporting that diplomats have said outgoing Yemeni President Ali Abdullah Saleh may be seeking exile in Oman.

Saleh, who made a stopover in Oman on the way to medical treatment in the US, said in a parting speech he would return to Yemen.

Though Omani government sources would not confirm or deny a request from Saleh seeking permission to reside in Muscat, they did say the sultanate would be reluctant towards such an agreement in fear of alienating future Yemeni administrations.