Talks between Pakistan's embattled President Pervez Musharraf's [Images] aides and Pakistan People's Party co-chairman Asif Ali Zardari, on an arrangement for 'peaceful co-existence', are at an advanced stage, a media report said on Wednesday.

The back channel talks between Musharraf's aides, led by National Security Council Secretary Tariq Aziz, and Zardari, were at an advanced stage and the two sides had met two or three times in the past 10 days, the Dawn News channel reported.

The PPP is set to form the government at the centre with the support of the Pakistan Muslim League-N, led by former premier Nawaz Sharif, who has been pressing for Musharraf's ouster after opposition parties swept the February 18 general election.

Quoting sources, the channel said Musharraf's aides had initially tried to convince Zardari to form a government with the support of the PML-Q, the party which backs the President and was routed in the polls.

However, according to the report, Zardari said this was not possible. The sources said Zardari had made it clear to Musharraf's aides that he wanted smooth sailing for the PPP-led government.

Zardari also said peaceful co-existence with Musharraf would be possible only if the President did not interfere in the affairs of new government and did not try to destabilise it, the sources said.

PPP leaders were not immediately available for comments.