(Reuters) - President Viktor Yushchenko gave party leaders more time on Wednesday to find a way to restore or replace Ukraine's governing "orange" coalition and avert a new election.

Yushchenko made the offer at last-ditch talks to stem almost continuous political turmoil since he was swept to power by mass pro-Western "Orange Revolution" protests in 2004.

Long at odds with his estranged ally, Prime Minister Yulia Tymoshenko, the president had earlier suggested he would call a new election if no deal was reached at Wednesday's meeting.

"I will give you this time," Yushchenko's website said he told parliamentary leaders, without specifying how long.

"It is important after today's consultations to take an initiative so that leaders in parliament can find a way out of the stalemate."

He also said holding what would be the third election in as many years was "another mechanism and no less democratic...

"You can run here, you can run there, but come up with some proposals to produce a solution to this impasse."

Yushchenko has paid scant heed to calls by Tymoshenko to patch up differences and reinstate their parties' coalition. Both politicians are assessing their chances in a presidential election due to take place by early 2010.

PRESIDENTIAL DECREE

The constitution allows 30 days after a coalition collapses to find a new governing team, after which the president must consult party leaders before dissolving the chamber.

Participants in Wednesday's talks, which lasted no more than an hour, agreed the president was now entitled to dissolve the assembly. Some suggested Yushchenko had abandoned hope of forming a coalition and would issue a decree on dissolution as soon as he had secured public financing for an election.

"The president is expecting parliament to allocate funds for an early election and he will then sign the decree," said Oleksander Yefremov of the opposition Regions Party. "He has held these consultations. There is nothing holding him back."

Mykola Tomenko, an ally of the premier, said a decree on dissolution would be "issued in the traditions of our country's old and new leaders -- once the president has left Ukraine".

After the talks Yushchenko flew to Rome for two days of talks with political and business leaders, news agencies said.

The "orange" coalition collapsed when the president's Our Ukraine party cut its link with Tymoshenko's bloc last month.

Their differences focus on a division of powers in Ukraine and the president's allegations that Tymoshenko has been too soft on Russia in its conflict with Georgia.

Tymoshenko says she has met all conditions set by the president for reinstating the governing team and urged him not to subject Ukraine to "chaos and the unknown".

A parliamentary race, probably in December, is unlikely to bring much change to the political landscape.

Polls give about 20 percent support to Tymoshenko and ex-premier Viktor Yanukovich, adversary of "Orange" protesters and now opposition leader. Yushchenko trails in single figures.