(Ahlul Bayt News Agency) - The protesters poured into the streets of the capital, the southern city of Taiz and other major cities following the Friday Prayers, demanding President Saleh's ouster.
In Taiz, protesters also held a funeral march for five anti-government protesters killed earlier this week in clashes with security forces.
Crowds of Saleh loyalists also rallied in Sana'a and Taiz in support of the embattled president. There were no reports of clashes between the two sides.
While the anti-government demonstrators have named this Friday as the "Day of Steadfastness," the pro-government gathering was held under the name "Day of Reconciliation."
Meanwhile, Saleh rejected an offer by the six-nation [Persian] Gulf Cooperation Council, which has invited Saleh and the opposition to a mediation session in Saudi Arabia to end the months-long unrest in Yemen.
According to Yemeni news agencies, Saleh has described the proposal, presented by Qatar, as unconstitutional.
"We don't get our legitimacy from Qatar or from anyone else...we reject this belligerent intervention," Saleh told cheering supporters in the capital Sana'a.
The opposition says the exit plan offered to Saleh see him hand power over to his deputy in exchange for guarantees of protection for him and his family.
"Saleh's options are gone. The [Persian] Gulf initiative must have come as a shock from Saudi Arabia, which was his last ally," said Mohammed Sharqi, the leader of a youth protest movement in Sana'a.
Since late January, hundreds of thousands of people have turned out for regular demonstrations in main Yemeni cities calling for corruption and unemployment to be tackled and demanding President Saleh steps down.
The protests have been met by riot police or supporters of President Saleh armed with knives and batons.
In a move to appease the opposition, Saleh, who has been in power for 32 years, said he will not seek another term in office in 2013 but has vowed to defend his regime "with every drop of blood."
Protesters, however, rejected his offer calling it too little too late and are demanding his immediate resignation.
According to local sources, at least 300 people have been killed and many others injured since the beginning of anti-Saleh demonstrations in the country.
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