Estanislao Aleixo da Silva is the spokesman from the Fretilin Party. 

"Members of the central committee unanimously approved this resolution, asking the Prime Minister (Mari Alkatiri) not to resign, and as well as asking the President (Xanana Gusmao) not to resign."

The developments threatened to completely unravel the government as it struggles to regain control following the worst outbreak of violence since the country voted for independence seven years ago.

Many East Timorese say Alkatiri's decision to fire 600 disgruntled soldiers in March, was to blame for street battles and gang warfare which left at least 30 people dead and caused nearly 150,000 people to flee their homes.

He also faces allegations of forming a hit squad to silence his political opponents - a charge he denies.

The country's popular President, Xanana Gusmao, last week demanded that Alkatiri resign.

But the ruling Fretilin Party said, after holding emergency talks on Sunday in the capital Dili, that the Prime Minister had accepted the unanimous appeal of its committee to remain in his post.

Ramos-Horta, who won a Nobel peace prize in 1996 for his non-violent resistance to Indonesian rule, responded by saying he would himself step down until a new government was established.