The United States has called on both sides in the conflict in Honduras to seek peaceful ways to resolve their differences.

"We continue to urge all parties in Honduras to find a peaceful, negotiated restoration of democratic and constitutional order for the benefit of the Honduran people," U.S. State Department spokesman Robert Wood said in a statement late on Wednesday. "We are encouraged that the two sides continue in serious, constructive discussions."

Another round of talks between representatives of ousted President Manuel Zelaya and the de facto government is due on Thursday, following reports of progress in Wednesday''s discussions, mediated by the Organization of American States (OAS).

Zelaya was expelled in June and his place was taken by Roberto Micheletti, the parliamentary speaker turned interim president.

Zelaya was bundled out of Honduras on June 28 by the military, acting on instructions from the Supreme Court and parliament, over efforts to seek an unconstitutional second presidential term. He was flown to Costa Rica. He returned to the country on September 21 and took refuge in the Brazilian Embassy.

Presidential elections are due to take place in Honduras on November 29.