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The rival leaders, together with ex-presidents Didier Ratsiraka and Albert Zafy, began meeting Tuesday in Maputo to divide up the top posts in the new government.
Under a deal reached August 9 during an initial round of talks, the rivals will establish a transitional government and hold democratic elections by the end of 2010.
The four leaders represent the Indian Ocean island's main political movements, and each has set out its own proposals, according to sources close to the meetings.
The leaders met individually Wednesday morning with members of the mediation team, which is led by former Mozambican president Joaquim Chissano.
They resumed face-to-face talks Wednesday afternoon following a break to meet with Mozambican President Armando Guebuza.
As the talks stretched into the evening Wednesday, sources close to the mediation said it was possible the negotiations, originally scheduled for two days, would be extended through Thursday.
But mediator Leonardo Simao said the mediation team was not worried about the pace of the talks.
"We are concerned with outcomes, a positive outcome - so don't look at your watch," he said.
According to a source close to the talks, ousted president Ravalomanana said in a declaration read during Wednesday's meetings that he refused to accept current leader Rajoelina as transitional president.
Ravalomanana's camp would however be open to a transitional president from the Ratsiraka or Zafy movements, his delegation said in a statement released to the media.
"The author of an unconstitutional change and democratically elected heads of state must not be put on an equal footing," the statement said.
Under the August 9 agreement, the four leaders must name an interim government within 30 days.
Ravalomanana, who has been in exile in South Africa since his overthrow, has promised not to seek a direct role in the interim government.
Rajoelina for his part declared on national television in mid-August that only he could be the transitional president.
According to the August 9 agreement, no member of the transitional government except its president will be eligible to run in the expected 2010 presidential election.
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Under a deal reached August 9 during an initial round of talks, the rivals will establish a transitional government and hold democratic elections by the end of 2010.
The four leaders represent the Indian Ocean island's main political movements, and each has set out its own proposals, according to sources close to the meetings.
The leaders met individually Wednesday morning with members of the mediation team, which is led by former Mozambican president Joaquim Chissano.
They resumed face-to-face talks Wednesday afternoon following a break to meet with Mozambican President Armando Guebuza.
As the talks stretched into the evening Wednesday, sources close to the mediation said it was possible the negotiations, originally scheduled for two days, would be extended through Thursday.
But mediator Leonardo Simao said the mediation team was not worried about the pace of the talks.
"We are concerned with outcomes, a positive outcome - so don't look at your watch," he said.
According to a source close to the talks, ousted president Ravalomanana said in a declaration read during Wednesday's meetings that he refused to accept current leader Rajoelina as transitional president.
Ravalomanana's camp would however be open to a transitional president from the Ratsiraka or Zafy movements, his delegation said in a statement released to the media.
"The author of an unconstitutional change and democratically elected heads of state must not be put on an equal footing," the statement said.
Under the August 9 agreement, the four leaders must name an interim government within 30 days.
Ravalomanana, who has been in exile in South Africa since his overthrow, has promised not to seek a direct role in the interim government.
Rajoelina for his part declared on national television in mid-August that only he could be the transitional president.
According to the August 9 agreement, no member of the transitional government except its president will be eligible to run in the expected 2010 presidential election.
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