Zimbabwe's ruling Zanu-PF party is to dismiss Robert Mugabe as its leader on Sunday, say reports.
Meanwhile, state broadcaster ZTV is reporting the president is expected to hold talks with the country's military commanders. Video: Zanu-PF says Robert Mugabe will be sacked on Sunday
Earlier, Mr Mugabe's nephew struck a defiant tone, insisting his uncle and his wife Grace were "ready to die for what is correct" and the embattled Zimbabwean President has no intention of stepping down.
Speaking from a secret location in South Africa, Mr Mugabe's nephew, Patrick Zhuwao, told Reuters that his uncle has hardly slept since the military seized power on Wednesday
He added that Mr Mugabe's health was "good" but he would not legitimise the "coup" which overthrew him.
The political turmoil unfolded as thousands of people marched on the streets of Harare and Bulawayo demanding Mr Mugabe, the world's oldest head of state, to resign.
Supported by the military, crowds sang, danced and hugged soldiers as they marched towards his official State House residence . Mr Mugabe has been under house arrest in his lavish "Blue Roof" compound in the wealthy Harare suburb of Borrowdale since the military seized control.
He said: "Let us now go and deliver the message that grandfather Mugabe and his typist-cum-wife should go home." Hundreds of Zimbabwean nationals in the UK also gathered outside the country's embassy in central London calling for the leader to step aside.
Mr Mugabe has reportedly been trying to buy time for his leadership during negotiations with military officials.
Reuters reports that his departure would likely to pave the way for an interim unity government led by Mr Mnangagwa, a former security chief known as "The Crocodile".
Documents seen by the news agency say stabilising the Zimbabwe economy will be the number one priority.
Earlier, a senior member of the party had threatened to arrange him to be fired on Sunday if Mr Mugabe "becomes stubborn".
They added: "When that is done, it's impeachment on Tuesday."
During his 37 years in power, at least three million Zimbabweans have emigrated in the face of economic mismanagement and hyperinflation.
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