The plan came as international rights groups slammed the interim government of interim leader Roberto Micheletti for a host of human rights violations since Zelaya's ouster on June 28, including extrajudicial executions.

Zelaya -- who was sent away by the Honduran military in a move supported by the courts and Congress -- said he would make his latest bid to return home after Costa Rican-brokered talks with the interim government collapsed.

He was set to travel to northern Nicaragua on Thursday and "to the border the following day," in a move sure to inflame already heightened tensions in the small Central American nation.

The exiled president would enter Honduras "when the conditions were ready," an advisor, Alan Fajardo, said in Nicaragua, naming the conditions as sufficient citizen participation and an element of surprise.

Earlier this month, Zelaya made an abortive attempt to land in the Honduran capital, Tegucigalpa, but was blocked by military units deployed at the airport.

On the ground, his supporters clashed with security forces loyal to Micheletti, killing at least one person and wounding several others.

Regional powers, including the United States, have backed Zelaya's quest to regain office, but urged him not to return for fear of prompting bloodshed in a country some say is teetering on the brink of civil war.

Honduras dominated talks at a regional Mercosur summit in Paraguay on Thursday, where Chilean President Michelle Bachelet called on the country's leaders to avoid a bloodbath.

The crisis has sent thousands of both Zelaya detractors and supporters on the streets in recent weeks.

In an increasingly polarized Honduras, Zelaya supporters called a national strike Thursday, with teachers unions suspending classes across the country.

The 15-person team of rights representatives -- from the Paris-based International Federation of Human Rights, the Washington-based Center for Justice and International Law and Spain's Federation of Associations in the Defense and Promotion of Human Rights -- said there had been "grave and systematic violations" in Honduras over the last month.

The groups mentioned extrajudicial executions during curfew hours, pressure on news media opposed to Micheletti's government and the "suspension of fundamental rights of Hondurans."

Honduran human rights commissioner Ramon Angel Custodio, who has enthusiastically endorsed the de facto government, denies the charges.

Hopes for a mediated solution to the crisis were scuttled when Micheletti's negotiators rejected fresh proposals late Wednesday that would allow Zelaya to return to power until his term ends in January.

Acting Honduran foreign minister Carlos Lopez Contreras told CNN's sister Spanish-language station that Zelaya's return as president was "impossible."

Costa Rican President Oscar Arias had called for Zelaya to head a national unity government, until his term ended in January.

In return, interim leaders would see a lifting of sanctions against the country, a limited amnesty for political crimes and a bar on Zelaya seeking constitutional reforms designed to allow him to seek another term in office.

But negotiators for the interim government returned to Honduras saying the deal presented in Costa Rica would not be signed by their leader.

"As I see it, it will be difficult for him to sign up," spokesman Mauricio Villeda said.

Zelaya meanwhile told Venezuela's Telesur channel that the crisis mediation "had practically failed."

Arias, who won a Nobel Peace Prize for his work as a mediator ending the region's brutal civil wars, suggested that if both sides failed to agree, they turn to international bodies, such as the Organization of American States (OAS).

They should seek a solution there "to the worst crisis in almost three decades of the young Honduran democracy," Arias said.

earlier related report
Honduran regime scotches plan for president's return
Honduras's de facto government has shot down a last-gasp deal to resolve the country's political crisis, insisting ousted President Manuel Zelaya cannot return to office.

The return of Mr Zelaya as president was impossible, interim foreign minister Carlos Lopez Contreras said on CNN's Spanish station, effectively killing hopes of a settlement.

Crisis mediator and Costa Rican President Oscar Arias has proposed a fresh plan for Zelaya's return Wednesday, with concessions for the interim government, which backed the army's June 28 expulsion of the Honduran leader.

Arias's plan called for Zelaya's return to the country as president in a national unity government, until his term ended in January.

In return, the current de facto leadership would see sanctions against the country lifted, a limited amnesty for political crimes and a bar on Zelaya seeking constitutional reforms designed to let him seek another term in office.

But negotiators for the de facto government returned to Honduras saying the deal presented in Costa Rica would not be signed by their leader Roberto Micheletti.

"As I see it, it will be difficult for him to sign up," spokesman Mauricio Villeda said.

Zelaya meanwhile told Venezuela's Telesur channel that the crisis mediation "had practically failed." The interim leaders had "decided to deny all possibility of an agreement," he added.

Arias, who won a Nobel Peace Prize for his work as a mediator in the region, earlier suggested that if both sides failed to agree, they turn to international bodies, such as the Organization of American States (OAS).

They should seek a solution there "to the worst crisis in almost three decades of the young Honduran democracy," he said.

A frustrated Arias said Honduras had turned into the North Korea or Albania of Central America.

Zelaya, exiled in neighboring Nicaragua, has said he will return "by air, land or sea."

But despite increasing international isolation, the interim leaders have maintained that Zelaya will be arrested if he attempts to return to the country.

Hondurans remain deeply split over the possibility of his return. Many fear it would provoke more violence after Zelaya's spectacular first attempt left at least one protester dead in clashes with soldiers.

On that occasion, troops had blocked the runway of the airport where he tried to land.

Hundreds of white-clad demonstrators on Wednesday protested against Zelaya's return in the capital, where the situation has become increasingly polarized.

"We don't like you, Mel," one banner read in Wednesday's demonstration, using Zelaya's nickname.

Zelaya's supporters meanwhile have announced their own demonstrations.

The European Commission's Relations Commissioner Benita Ferrero-Waldner called on both sides to defuse the crisis.

"Everything must be done so there is a peaceful solution, not a military confrontation," she said during a trip to Mexico.

This week, the European Union this week increased its pressure on the new regime, suspending 65.5 million euros (93 million dollars) in aid to Honduran institutions as part of the international aid freeze.

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