The leader of a coup in Burkina Faso has said he is still in charge despite the passing of a deadline set by loyalist soldiers for his forces to surrender or face attack.

Gen Gilbert Diendéré, who seized power last week, said he was ready to negotiate but was awaiting the outcome of a summit of west African leaders in Nigeria.

“I’m not stalling for time. I’m within the time allotted to me. I am still the president of the National Democratic Council,” he said, referring to the newly formed junta.

Few people ventured on to the streets of the capital Ouagadougou as the deadline set for 10 am passed. Presidential guard forces loyal to Diendéré were still in control of the presidential palace on Tuesday, but troops opposing the coup retained most of other strategic points in the city.

Loyalist troops said they were preparing to attack the Camp Naba Koom military base near the presidential palace. A loyalist source said talks had restarted and the aim was to avoid violence.

The coup derailed preparations for an election on 11 October. The vote is meant to restore democracy almost a year after an uprising ended President Blaise Compaoré’s 27 years in power.

In one apparent olive branch, the coup leaders released the interim prime minister, Lt Col Yacouba Isaac Zida, who had been held hostage since the revolt began.

Former spy chief Diendéré and his presidential guard rebelled on Wednesday, storming a cabinet meeting and detaining the president and other ministers. After the coup, crowds took to the streets of Ouagadougou and other cities, calling on the rebels to end their revolt.

“They [the presidential guard have until 10 am to lay down their weapons and surrender at the Camp Sangoule Lamizana,” a loyalist officer said, referring to a military barracks west of the capital.

“The prime minister is free. He has returned to his official residence,” said Zida’s military aide, Lt Boris Nadie.

The interim president, Michel Kafando, who was taken hostage in the coup and then placed under house arrest, sought protection in the French ambassador’s residence in Ouagadougou on Monday.

The results of the summit, chaired by Nigeria’s president, Muhammadu Buhari, was expected later on Tuesday. At issue is a proposal by mediators from the west African bloc Ecowas for a draft agreement to end the crisis.

Supporters of Burkina Faso’s interim government rejected that proposal on the grounds that it gives amnesty to the coup leaders.

“We have no interest in the proposal that will be discussed at the summit because right now we are in the process of solving our own contradictions,” Sheriff Sy, president of the interim transitional council said.

His rejection of the proposal was echoed by members of civil society and protesters in Ouagadougou who burned tyres and blocked streets on Monday in a show of opposition to the Ecowas move.