Prime Minister Morgan Tsvangirai is ready to 'talk tough' and make a firm decision over the fate of his party's involvement in the inclusive government.

It follows the statement by ZANU PF's politburo meeting on Wednesday that they would not be giving in to further concessions in talks with the MDC until targeted sanctions imposed by Western nations are lifted.

Tsvangirai is currently in Davos, Switzerland attending the World Economic Forum. His spokesman James Maridadi told SW Radio Africa that the Prime Minister spent much of the last 24 hours in consultations with senior MDC party members on the way forward following ZANU PF's latest ultimatum.

"The Prime Minister has come up with a position after consulting senior party members. He's well briefed with what has been happening at home and I'm sure his position would only be known when he engages ZANU PF back home," Maridadi said.

Meanwhile, to highlight the urgency of the escalating crisis the SADC facilitator and South African President Jacob Zuma was due to meet Tsvangirai in Davos on Thursday evening to discuss the issue.

"He's also due to meet Senegalese President Abdoulaye Wade. Already he's held bilateral talks with his Canadian counterpart as well as with the Tanzanian President Jakaya Kikwete," Maridadi added.

Robert Mugabe's ZANU PF signaled that the talks were as good as dead after communicating their party position on Wednesday. Analysts believe ZANU PF has played into the hands of the MDC, who long wanted the talks declared deadlocked.

Analyst and University of Zimbabwe lecturer John Makumbe told the Chinese Xinhua news agency that ZANU PF 'would be fooling itself' if it thought it would no longer make any more concessions.

"If they are saying no more concessions, they are basically saying they will not resolve the outstanding issues, and then the matter will have to be referred back to SADC. It will be interesting for ZANU PF to tell SADC that it is not making any more concessions, because that will be the end of the GPA and the end of the government of national unity, and elections will have to be held," he said.

Many in the MDC want the talks referred to SADC for arbitration. SADC is a guarantor of the power-sharing arrangement along with the African Union. Another option is to call for free and fair elections, a position favoured by Zuma, though Tsvangirai himself has indicated he thinks it is early days for a new ballot.