Yemeni government said on Thursday that President Ali Abdullah Saleh is ready to sign a Gulf-brokered deal that proposed him to resign within a month.

"President Saleh is now ready to ink the Gulf Cooperation Council (GCC) deal, which he had refused to sign because the opposition rejected to attend the signing ceremony in the presidential palace," official Saba news agency quoted an unnamed government official as saying.

The deal, which stipulated that Saleh should leave office within a month after he signs it in return of immunity from prosecution, was suspended by the GCC leaders on May 22 after Saleh refused to sign it for the third time.

A day after Saleh announced his refusal, pitched street battles erupted in downtown Sanaa between government forces and armed tribesmen loyal to opposition tribal leader Sadiq al-Ahmar.