Houthi rebels and political allies of ex-president Ali Abdullah Saleh have signed a deal to set up a power-sharing council to govern war-shattered Yemen.
But the United Nations says the deal threatens peace talks and Yemen’s government has reportedly reacted by declaring the peace process over.
The Iranian-allied Houthis and Saleh loyalists hold most of the country’s north while Yemen’s Saudi-backed government, forced out of the capital Sanaa, is now based in Aden.
But even there President Abd-Rabbu Mansour Hadi is struggling to impose his authority.
A Saudi-led alliance intervened in Yemen’s conflict in March 2015 to try to restore Hadi to power.
The devastating civil war has killed more than 6,000 people and caused a humanitarian crisis.
A shaky ceasefire took effect in April.