Violence between Yemeni soldiers and anti-government gunmen has killed at least 16 people, delaying Friday's announcement of an interim government led by the opposition under a unity deal with outgoing President Ali Abdullah Saleh's party, DPA reported.
The opposition, which comprises six parties, said it would now announce the cabinet lineup on Sunday.
Medical and opposition officials said at least 11 people were killed and 50 others were wounded on Thursday after government forces shelled residential areas in Taiz, Yemen's commercial capital and its second largest city.
Anti-government gunmen killed five soldiers in Taiz on Thursday, security officials said.
A deal signed between Saleh and the opposition in Saudi Arabia last month appears to have failed to end the bloodshed. Saleh stepped down after the deal and transferred power to his deputy, Abd-Rabbo Mansour Hadi.
Prime Minister-designate Mohammed Basindwa, called Hadi on Thursday and urged him to order the army to stop shelling attacks in Taiz, saying the opposition would reconsider the deal if the violence continues.
"If this doesn't happen we will reconsider our position," said Basindwa.
Under the deal brokered by neighbouring Arab Gulf states to end 10 months of violence, Saleh's ruling party will have the defence, foreign affairs and oil portfolios, while opposition will get the ministries of the interior, information and finance.