Yemen's dominant Houthi movement dissolved Parliament on Friday and said a new interim Assembly and government would be formed, a move denounced by a main political faction as a coup.
Yemen has been in political limbo since President Abd-Rabbu Mansour Hadi and the government of Prime Minister Khaled Bahah resigned last month after the Houthis seized the presidential palace and confined the head of state to his residence in a struggle to tighten control.
The Houthis, who became power brokers when they overran Sanaa in September, had been holding talks with the main political factions trying to agree a way out of the stand-off.
Friday's declaration suggested that the Houthis had taken on more powers, including forming the new Parliament and control over the military and security forces.
Some political leaders attended the announcement, which took place at the Presidential Palace. Former interior and defence ministers were also there, indicating that the announcement might have had the blessing of some other political factions.
The new assembly is to elect a five-member interim presidential council to manage Yemeni affairs in a transitional period of up to two years, according to a televised statement.
"What the Houthis have done is political suicide and also a coup that would lead the country into the unknown," said Nasser al-Noubah, a leader of the southern separatist movement al-Hirak.