Former Pakistan prime minister Benazir Bhutto has demanded that Pervez Musharraf [Images] step down as army chief if he wants to continue as president and has threatened to challenge in court any attempt to get him reelected from the current assemblies.

"Such an attempt would be disputed and open doors for exercise of options such a resignation from the assemblies, a court challenge and putting up an opposition candidate against Musharraf," Bhutto said addressing Pakistani press here Sunday night.

The comments came amid reports that Musharraf and Bhutto had reached a quid pro quo deal to facilitate the General's reelection in exchange for her return to Pakistan from self exile to take part in the general elections due to be held later this year.

Bhutto confirmed that her party and Musharraf were in negotiations but said no agreement has been reached so far.

"We're holding high-level negotiations with the military regime for a return to the civilian rule," the Pakistan People's Party said, adding that her party would not accept Musharraf in uniform as president.

But she would not say whether or not she herself had had talks with Musharraf. To a barrage of question, she only said presidency in Islamabad had denied any such meeting and none of her party officials had confirmed it.