The New York Times reports from Harare:

Advisers to President Robert G. Mugabe of Zimbabwe are in talks with the opposition leader, Morgan Tsvangirai, amid signs that Mr. Mugabe may be preparing to resign, a Western diplomatic source and a prominent Zimbabwe political analyst said Tuesday. The negotiations about a possible transfer of power away from Mr. Mugabe come after he apparently concluded that a runoff election would be demeaning, a diplomat said.

As the Times points out, a deal could easily fall apart during the negotiations. But the story sounds solidly sourced. This is excellent news for a country that has been destroyed by Mugabe's madness.

UPDATE: Tsvangirai's party denies it is in talks with Mugabe, but the AP is reporting that Mugabe's aides are indeed in discussions with Tsvangirai's people. The deal is close, multiple opposition sources are telling the BBC.