"The accord is dead," Zelaya told Radio Globo. "There is no sense in deceiving Hondurans."

Forged last week with the help of U.S. diplomats, the pact gave the two sides until midnight Thursday to install a government with supporters of Zelaya and Roberto Micheletti, who was named interim president by Congress after Zelaya was ousted on June 28.

Jorge Reina, a negotiator for Zelaya, said the pact fell apart because Congress failed to vote on whether to reinstate the deposed president before the deadline for forming the unity government.

The pact did not require Zelaya's return to the presidency. It left the decision up to Congress. Zelaya interpreted that to mean that Congress had to vote on the issue by Thursday.

Supporters of Micheletti, who was named interim president by Congress after Zelaya was ousted on June 28, disputed that, saying the pact required that members of the unity Cabinet be in place by Thursday but that there was no deadline for Congress to meet.

"The de facto regime has failed to live up to the promise that, by this date, the national government would be installed. And by law, it should be presided by the president of Honduras, Manuel Zelaya," Reina said.

Shortly before midnight, Micheletti announced that a unity government had been created even though Zelaya had not submitted his own list of members. Micheletti said the new government was composed of candidates proposed by political parties and civic groups. He did not name the new members.

"Everybody, with the exception of Mr. Zelaya, recommended Hondurans to lead the institutions of our country as part of the new government," Micheletti said.

He said the unity government "is representative of a large ideological and political spectrum in our country and complies strictly with the agreement" brokered last week.