Supporters of Venezuela's President Hugo Chavez stand outside Miraflores palace in Caracas. Venezuela's elections chief said Chavez won the referendum to eliminate term limits, paving the way for him to run again in 2012. (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 election chief says.

National electoral council chief Tibisay Lucena said Sunday that with 94 per cent of the vote counted, 54 per cent backed the president's proposal on term limits. 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."

CBC's Connie Watson in Caracas said there were some notable differences between the president's victory speech and the fiery rhetoric he has become know for in recent years.

There was no criticism of the United States, Watson said, and Chavez told his audience that he was prepared to address some of the pressing concerns of their lives — rising crime, inflation and a drastic drop in income because of falling oil prices.

"People here have said he's been so focused on his own grip on power that he's ignored the really big issues," she said, "but last night he promised to get out on the streets and fight crime and do a better job of it."

Venezuela's murder rate is one of the highest in Latin America.

Opposition will accept result

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 combating sharp 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.

Venezuela's next elections are scheduled for 2012, with the president serving a seven-year term.

With files from the Associated Press