Zimbabwean President Robert Mugabe and opposition leader Morgan Tsvangirai should stop futile power-sharing talks and step down to allow a neutral transition team to lead the country while preparing for another election, a think-tank says.

A report by the Brussels-based International Crisis Group released Tuesday says talks are hopelessly deadlocked between the ruling ZANU-PF and Tsvangirai's Movement for Democratic Change and show no signs of improving.

"No new power-sharing formula premised on Mugabe remaining president and Tsvangirai becoming prime minister seems likely to produce a workable outcome," it says.

The report recommends stripping both leaders and all ministers of their posts, then establishing a transitional administration run by non-partisan experts.

The team would run the country for 18 months, with the mandate of stabilizing the economy and preparing Zimbabwe for an election.

MDC's Tsvangirai had the most votes in the March 29 election but not enough to avoid a run-off. Mugabe won the uncontested June 27 run-off vote after Tsvangirai withdrew, citing escalating attacks on his supporters that he blamed on Mugabe's party.

Power-sharing negotiations began in August but bogged down over cabinet posts.

Meanwhile, the country is struggling to cope with a cholera epidemic that has claimed 1,000 lives.

About a third of the population has fled to neighbouring countries, where cholera is spreading, and a third of remaining citizens face starvation, the report says.

"Securing an end to Zimbabwe's nightmare is going to require a fundamentally new approach," the report said.

The think-tank suggests a neutral Zimbabwean citizen — likely from the private sector, civil society or an international institution — would be chosen as a chief administrator by a two-thirds parliamentary majority. The person could not run for president in the next election nor serve as prime minister after it.

The chief administrator would have the authority, subject to two-thirds support from Parliament, to appoint administrators to lead ministries, as well as senior civil servants, a reserve bank governor and provincial governors.

Implementation of the idea would require amendments to the constitution, the report says.

Part of the deal would be a promise not to domestically prosecute or extradite Mugabe. The same would apply to members of Joint Operations Command if they accept retirement and refrain from actions that threaten the country's stability.

The report suggests donors would be needed to support the administration, and it would also require the lifting of sanctions at some point in the process.