Supporters of Venezuelan President Hugo Chavez gather outside the Miraflores presidential palace, where Chavez addressed them after the release of official results from Sunday's referendum. (Ariana Cubillos/Associated Press)

Venezuelan President Hugo Chavez has won a referendum to eliminate term limits, paving the way for him to run again in 2012, the country's elections chief said Sunday.

National electoral council chief Tibisay Lucena said with 94 per cent of the vote counted, 54 per cent have backed the president's proposal. He said the trend is irreversible.

Fireworks exploded in the sky and caravans of supporters celebrated in the streets of Caracas, waving red flags and honking horns after Sunday night's announcement.

Thousands of people gathered outside Miraflores Palace, where Chavez appeared on a balcony to sing the national anthem and address the crowd.

"Today we opened wide the gates of the future," Chavez proclaimed. "Venezuela will not return to its past of indignity."

At their campaign headquarters, Chavez opponents — who say the amendment pushes Venezuela closer to dictatorship — hugged one another, and some cried.

Several opposition leaders left without speaking, but those who remained said they wouldn't contest the vote.

"We accept this result," said student leader David Smolansky, 23. "We're still standing. We're committed to Venezuela."

Voters on both sides said their decision was crucial to the future of Venezuela, a deeply polarized country where Chavez has spent a tumultuous decade in power channelling tremendous oil wealth into combatting gaping social inequality.

"This victory saved the revolution," said Gonzalo Mosqueda, a 60-year-old shopkeeper, sipping rum from a plastic cup outside the palace. "Without it everything would be at risk — all the social programs and everything he has done for the poor."

Chavez, 54, maintained that he should be allowed to run again after his current presidential term expires in order to secure his socialist revolution. He asked supporters to cast their ballots in favour of scrapping term limits for all elected officials.

The opposition warned if the constitutional amendment passed, it could allow Chavez to be president for life, and they blamed his decade in power for rising crime and corruption in the country.

When the polls opened at 6 a.m., long lines had already formed at many voting stations, but they moved quickly because of the "yes" or "no" answer. When they closed at 6 p.m., people already inside the polls were allowed to cast their ballots.

Pre-election polls had suggested the vote would be even tighter than it turned out to be.

Chavez, first elected in 1998, lost a similar referendum in December 2007 by a slim margin.

With files from the Associated Press