ISLAMABAD, July 10 (Retuers) - Negotiations to an end a bloody standoff at a Pakistani mosque ran into deadlock on Tuesday after earlier speculation that a deal might be struck, the chief government negotiator said.

"I am returing very disappointed," former prime minister and ruling party leader Chaudhry Shujaat Hussain told reporters.

Gunfire rang out from the vicinity of the mosque compound where militants are holed out, and which has been under siege by security force for a week, moments after Hussain finished speaking.

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