Prime Minister Abhisit Vejjajiva of Thailand has rejected an offer by anti-government protesters to call off their demonstrations in Bangkok in return for early elections.
The 'red-shirt' protesters, who were previously calling for parliament to be dissolved immediately, now say that should happen within a month.
Mr Abhisit says he cannot accept the terms of the demonstrators, because he says they have used violence and intimidation in their campaign.
The BBC reports tensions Bangkok are rising once more.
The 'red-shirts' have been occupying parts of the city since 14 March.
On Thursday, one person was killed and more than 80 injured by grenades near their barricades.
Twenty five people were killed and hundreds injured by troops on 10 April.
A state of emergency was declared by the prime minister on 7 April.