High-level U.S. plan for Mubarak to quit immediately

The White House is reportedly discussing a plan with Egyptian officials that would see Egyptian President Hosni Mubarak resign and immediately hand power to an interim government backed by the country's military.

The interim government would then work toward preparing the country for free and fair elections, to be held later this year.

As looting and arson tore through Cairo's streets amid the nation's worst civil strife in generations on Thursday, U.S. officials were mulling options aimed at restoring order in the country, which is a key U.S. ally in the region.

The New York Times first reported on the high-level discussions between top U.S. and Egyptian officials late Thursday.

Diplomatic talks continued late into the day as officials grappled with an escalation of violence that resulted in gangs of pro-Mubarak allies attacking anti-government demonstrators, foreigners and journalists for a second straight day Thursday.

Earlier Thursday, in an apparent reversal, Mubarak gave the first indication that he would be willing to step aside. However, the 82-year-old president tempered his statement by warning that chaos could result if he left his post after three decades of authoritarian rule.

"I am fed up. After 62 years in public service, I have had enough. I want to go," Mubarak said in an interview with ABC News.

Meanwhile, the Egyptian army took steps Thursday to halt the advance of pro-government rioters into a square in central Cairo where thousands of protesters have spent days holding demonstrations against the Mubarak regime.

At least eight people have been killed, and hundreds injured, in the violence.

The government increasingly blamed foreigners for fueling the demonstrations over the past 10 days.

"When there are demonstrations of this size, there will be foreigners who come and take advantage and they have an agenda to raise the energy of the protesters," Vice-president Omar Suleiman said on state television.

CTV's Lisa LaFlamme said the army was using tear gas and gunshots to try to disperse the groups of people fighting on the streets.

Earlier Thursday, the army placed soldiers directly in between the two groups, who have been in an unrelenting battle on the streets of Cairo for the past 24 hours.

Reporters have seen sticks, stones, petrol bombs, bottles and other projectiles thrown between the two groups, as the street clashes have raged on the edges of Tahrir Square -- the centre of the ongoing protests by thousands of Egyptians who want Mubarak to leave office immediately.

LaFlamme said at least 10,000 determined anti-government protesters remain inside Tahrir Square, as pro-Mubarak forces continue to try to push their way into the area.

The anti-government protesters blame Mubarak for many economic and social problems that have afflicted Egypt during his rule.

On Thursday, the recently appointed Suleiman said the president's son would not run to succeed his father in elections this fall. Mubarak has already said he will not run again.

The Mubarak regime also announced that it had frozen the assets of several former ministers, who are also under a travel ban.