TEGUCIGALPA, (Reuters) - Honduras’ de facto leader  Roberto Micheletti appeared to back away yesterday from a  proposed deal to resolve a political crisis sparked when the  army ousted President Manuel Zelaya in a coup.

Zelaya’s lead negotiator Victor Meza had earlier said the  two sides agreed on the wording of an agreement, and the army  chief said a resolution was near.

But negotiators who met later with Micheletti in the  presidential palace in Tegucigalpa said no final deal had been  reached on the central issue of reinstating the leftist Zelaya,  who was toppled in a June 28 coup.

“The dialogue on this point has been cordial and both sides  have made important advances. However, at this moment, there is  no final agreement on this point,” they said in a statement.

The coup triggered Central America’s worst crisis in years.  It has become U.S. President Barack Obama’s first major test in  Latin America after promising better relations with the  region.

The central issue in negotiations this week is the return  of Zelaya to power, but Micheletti, a veteran politician who  took office after the putsch, said yesterday that the  Supreme Court would have to decide the future of his rival.

“As I understand it, Zelaya is asking that Congress  determine if he can return or not,” Micheletti said. “But it is  the Supreme Court that has to decide.”

The proposal put together by negotiators is also believed  to contain plans for a interim government with representatives  from both camps.

Army chief Romeo Vasquez, a key figure in the coup, said a  deal appeared close. “I know that we have advanced  significantly, we are almost at the end of this crisis,” he  told local radio HRN.

Zelaya was toppled and forced into exile by soldiers but  slipped back into Honduras last month and took refuge in the  Brazilian embassy in the capital to avoid arrest.