Ousted Honduran President Manuel Zelaya on Friday pulled out of an agreement that was supposed to solve the country's political crisis, leaving the next moves to voters in a presidential election on Nov. 29 -- and to Latin American leaders who will have to decide whether to accept the winner.

"This deal is dead. The other side has failed to uphold their end," said Mr. Zelaya in a radio interview Friday. His move followed the Honduran Congress's failure to vote this week on reinstating him.

Mr. Zelaya and the interim government, led by President Roberto Micheletti, agreed a week ago to create a government of national unity and let the country's Congress decide on the issue of Mr. Zelaya's return to office, which has been the central issue of the crisis since he was removed on June 28.

In return, the U.S., in what was a policy turnaround, said it would recognize this month's election even if Congress didn't return Mr. Zelaya to power, and would lift economic sanctions Washington had placed on Honduras, one of the hemisphere's poorest countries.

After Mr. Zelaya's statement Friday, a U.S. State Department spokesman said the U.S. didn't consider the agreement to be dead. "Both sides need to return to the table and negotiate the formation of a national unity government," the spokesman said.