HARARE, Oct 16 (Reuters) - Zimbabwe's President Robert Mugabe voiced optimism on Thursday about reaching an agreement with the opposition on forming a cabinet and said compromise was needed "on all sides".

Asked if he was still optimistic that political parties trying to rescue a power-sharing deal signed a month ago could reach a breakthrough, he said: "Yes. There is need for compromise on all sides."

"They (the opposition) maintain their position as we do," he told reporters after a third day of talks in Harare mediated by former South African president Thabo Mbeki ended without agreement.

AlertNet news is provided by