The President of Yemen, Ali Abdullah Saleh, has agreed to step down under a plan proposed by the Persian Gulf Arab States.

The news was reported by BBC Sunday, citing officials in the capital Sanaa saying the government had accepted the 30-day transition plan aimed at ending violent unrest over Saleh's 32-year rule.

Under the plan, proposed by Saudi Arabia and five other states, within a month of signing an agreement with the opposition, Saleh must quit and hand over to Vice-President, Abdu Rabu Manur Hadi; he must appoint an opposition leader to run an interim government which is to prepare for presidential elections two months later; Saleh, his family and his aides are given immunity from prosecution

The US has welcomed the announcement with the White House urging all parties to "swiftly" implement a peaceful transfer of power.

Opposition leader Yassin Noman is quoted saying he would not take part in a proposed national unity government because they do not accept Saleh's immunity from prosecution.

At least 120 people have died during two months of protests.

Saleh sustained a major political blow last month when several of his ministers and ambassadors resigned in protest at the shooting of 45 people at a demonstration in Sanaa.

The president promised earlier not to renew his presidency in 2013 or hand over to his son, but he is known for making such promises in the past without fulfilling them.

If Saleh steps down, he will join Tunisia's Zine al-Abidine Ben Ali and Egypt's Hosni Mubarak as the latest Arab leader to lose power because of a popular revolt this year.