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The protest leaders, who head more than a dozen opposition parties, have long shunned talks. But on Friday they said they were willing to talk to the president, if certain conditions were met.

No talks have been scheduled, but European Union special representative Peter Semneby said he was in touch with both sides to help bring them together. "It's in the air that this could happen," he told The Associated Press.

The protesters are most angry with Saakashvili over his handling of the brief war last summer with Russia. The Georgian army fled ahead of invading Russian troops, and the country lost territory as separatists and their Russian allies took full control of two breakaway Georgian regions.

The protesters also accuse the president of concentrating power in his hands and embarrassing his countrymen by his erratic behavior.

Many Georgians still support Saakashvili, who has overseen significant economic growth, although he faces criticism for not doing enough to help the poor and create jobs.

The crowds have steadily diminished since the protests began on Thursday, when tens of thousands of protesters packed the capital's central avenue.About 10,000 people protested Saturday

Both the opposition and the government have expressed a commitment for the protests to take place peacefully. Police have not intervened, even when protesters have blocked traffic.Interior Minister Vano Merabishvili said Friday that police would not disperse the protests no matter how long they continued. "But it's already over," he told the AP.

"The fight continues, and today I have the impression that this fight will end soon with your victory," said Levan Gachechiladze, the main opposition candidate in last year's presidential election.

The BBC's Tom Esslemont in Tbilisi says the protesters' message has not changed - they still want Mr Saakashvili to resign - but with a diminishing turnout, the opposition seems increasingly unsure as to how to convince him or the rest of the country of its cause. Some 60,000 people rallied at the start of the campaign on Thursday.

Dmitry Rogozin, the hawkish Russian ambassador to Nato, said Nato should cancel the exercises."Nato needs to show flexibility and hear our arguments. The worst thing is that this organisation is becoming more and more unpredictable," he said. "Nato's behaviour is not decent, stable or appropriate."

The exercises take place against the backdrop of a growing military buildup on both sides of Georgia's tense and disputed borders with the breakaway republics of South Ossetia and Abkhazia.Russia has beefed up its military presence in both territories, and last week signed an agreement giving its army full control of border security.

The EU and Nato have strongly protested against the move, saying it is in breach of a peace agreement signed last August by Russia's president, Dmitry Medvedev, and the French president, Nicolas Sarkozvy.Under the deal, Medvedev promised to pull Russian troops back to their positions before last summer's war over South Ossetia.

Saakashvili's position in Georgia, meanwhile, is increasingly under threat following a series of protests by the country's opposition.Opposition leaders have dismissed yesterday's apparent army mutiny as a fabrication by Saakashvili designed to discredit his internal enemies.

Today's exercises involve more than 1,000 soldiers from a dozen Nato member states and partner nations.Several countries, including neighbouring Armenia, have recently pulled out of the exercises, apparently fearing Russian displeasure.

"I don't think that it should be a surprise that after we lost 20% of Georgian territory and have no democracy in the country, we are asking for the resignation of the president," said Nino Burjanadze.

Ms Burjanadze was formerly an ally of Mr Saakashvili but now leads the opposition Democratic Movement-United Georgia party.

There are other examples, like Turkmenistan’s May signing of a gas exploration deal with a German company, and Armenia’s awarding of a major national honor to Moscow’s nemesis, President Mikheil Saakashvili of Georgia. But the biggest came last week when Kyrgyzstan — set to receive $2.15 billion in Russian aid — reversed a decision that had been seen as a coup for Moscow, last winter’s order terminating the American military’s use of the Manas Air Base there.

There are few projects that matter more to Russia than restoring its influence in the former Soviet republics, whose loss to many in Moscow is still as painful as a phantom limb. Competition over Georgia and Ukraine has brought relations between Moscow and Washington to a post-cold-war low, and the matter is bound to be central to the talks that begin on Monday between Russia’s president, Dmitri A. Medvedev, and President Obama.

Russia’s ability to attract its neighbors to its side and keep them there is unimpressive. The Kremlin’s methods have been reactive and often bullying, combining incentives like cheap energy or cash disbursement with threats of trade sanctions and gas cutoffs.The war in Georgia seems to have hurt Moscow in that regard. Rather than being cowed into obedience, as most Western observers feared, the former republics seem to have grown even more protective of their sovereignty. Moreover, the leaders themselves have thrived by playing Russia and the West and, in some cases, China off against one another, although that has not brought stability or prosperity to their countries. In Moscow’s so-called zone of privileged interests, in other words, Russia is just another competitor.

Kyrgyzstan’s reversal on Manas is a case study in canny horse trading. Russian officials, including Mr. Medvedev, have said they blessed the decision, and that may be true, but President Kurmanbek S. Bakiyev is the one who walked away with what he wanted. Moscow wanted the base, a key transit hub for the United States’ war in Afghanistan, shut down; Kyrgyzstan wanted more money. In February, Moscow seemed to have achieved a master stroke — at a news conference announcing the pledge of $2.15 billion in Russian aid, Mr. Bakiyev said the United States would have to leave Manas in six months.

The first Russian payments — a $150 million emergency grant and a $300 million low-interest loan — arrived in April, allowing Mr. Bakiyev to pay wages and pensions as he began his re-election campaign. Then Kyrgyzstan shocked the region by announcing a new agreement with the United States. Washington will pay more than triple the rent for the base — now called a “transit center” — increasing its annual payment to $60 million from $17.4 million, while kicking in upwards of $50 million in grants to the government. No one knows if the Kremlin will make good on the rest of its pledge.

Moldova, which has just received a Russian pledge of $500 million four weeks before voters go to the polls to elect a new Parliament.

Belarus’s president, Aleksandr Lukashenko, who is avidly pursuing Western partners, has been barraged with carrots and sticks from Moscow — first promised $2 billion in Russian aid, then bitterly chastised for his economic policy, then punished with a crippling ban on the import of milk products, then rewarded by a reversal of the import ban. Russia regards Mr. Lukashenko’s truculence as a bluff.

But even though European monitors have long been on the ground, Russia still holds large areas that had irrefutably been under Georgian control, and thousands of Georgians have not been allowed free access to homes far from the disputed territory where the war began.

Several areas under Russian control are at odds with the terms of the cease-fire plan. The most obvious examples are in the Kodori Gorge and the agricultural valley outside the town of Akhalgori

Gilles Janvier, deputy head of the European monitoring mission, said in an interview that Russia had told diplomats that it had entered its own military agreement with the two breakaway regions in Georgia, which the Kremlin recognizes as independent states, and that these newer arrangements rendered the troop withdrawal component of the cease-fire plan obsolete.

“They say there is now a new bilateral agreement between them and South Ossetian and Abkhaz forces that lets them station troops,” Mr. Janvier said.

A senior American official said that Secretary of State Hillary Rodham Clinton raised the subject in her meeting in early March with Sergey V. Lavrov, Russia’s foreign minister, to no apparent effect.