Egyptian army soldiers stand guard next to an armored personnel carrier (APC) near Tahrir Square in Cairo, August 6, 2013.[Photo/Agencies]

But the al-Ahram report dashed hopes of a breakthrough, with the government casting the blame on what it called the intransigence of Mursi's Muslim Brotherhood.

The newspaper said the interim government would announce "the failure of all US, European, Qatari and UAE delegations in convincing the Brotherhood of a peaceful solution to the current crisis".

The government had allowed the envoys to visit jailed Brotherhood leaders in order to give a peaceful solution a chance.

But it now considered Mursi's overthrow a fait accompli and would proceed with its own "road map" for elections in nine months, al-Ahram said.

Asked to comment on the newspaper report, a senior US State Department official in Washington said, without confirming that the talks had broken down: "We are still committed to our ongoing efforts at calming tensions, preventing violence and moving toward an inclusive political process."

The interim Egyptian government's announcement would set the stage for a showdown with pro-Mursi protesters camped out at Rabaa and al-Nahda in Cairo, saying they were non-peaceful gatherings.

The security forces last week promised the protesters safe exit if they left the camps, but warned their patience was limited.

They may, however, hold off any action until after Sunday, the end of Eid al-Fitr, the holiday that marks the close of the Muslim fasting month of Ramadan.