Harare: Zimbabwe President Robert Mugabe and opposition leader Morgan Tsvangirai will hold a make-or-break meeting in Harare on Sunday aimed at finalising a power-sharing deal, a South African newspaper reported on Friday.

It is understood the two are not "too far apart", although the central issues remain unresolved, Business Day reported, citing unnamed sources.

Mugabe said on Thursday that the talks were going well, but dismissed media reports about a draft agreement as nonsense.

South African President Thabo Mbeki, lead regional mediator in Zimbabwe, was expected to fly to Harare Saturday or Sunday for the talks, said Business Day.