BREAKING: Yemen's President Hadi still in Aden but isolated: Sources

President Abd-Rabbu Mansour Hadi is isolated and will have no role in future political arrangements, according to a Yemeni diplomat

Southern People's Resistance militants loyal to Yemen's President Abd-Rabbu Mansour Hadi take positions on the frontline of fighting against Houthi fighters in the country's southern province of Lahej March 24, 2015

Yemeni President Abd-Rabbu Mansour Hadi has not fled the southern capital of Aden, a Yemeni diplomat has told . News of Hadi's escape is mere rumours spread in the media by Shia Houthi rebels, he said.

The source confirmed political powers are holding talks with Hadi while fierce battles are taking place around him, insisting Hadi is isolated and will have no role in future political arrangements.

Another source close to Defence Minister Mahmud Al-Subaihi said that there is a bid to settle the situation after Houthis advanced towards Aden.

The deal, which was unveiled by Aden's military police chief, stipulates that Al-Subaihi wants the army forces not enter a direct confrontation with Houthis militias and that the Shia rebels have reportedly offered that they will appoint an interim Houthi president and that Al-Subaihi will be the vice president representing the south.

The alleged deal has not been confirmed yet.