Embattled Yemeni President Ali Abdullah Saleh is likely to be eased out of office with Americans reported shifting positions and backing moves to replace him by his deputy Abd al-Rab Mansur al-Hadi.

As violence continues to inflame the key strategically located country with 1,600 people reported injured in fresh riots in the city of Taiz, Al-Jazeera said the moves to oust Saleh had also been backed by Gulf monarchies and his prime ally Saudi Arabia.

The Gulf foreign minister who met in Saudi capital of Riyadh in a statement said the "Gulf Cooperation Council (GCC) have agreed to begin contact with the Yemeni government and opposition to overcome the current situation."

The GCC supported the moves to work out a negotiated agreement to overcome the status quo.