After marathon talks with Guinea's leader Alpha Conde and Mauritania's Mohamed Ould Abdel Aziz, Jammeh accepted to hand over power peacefully to The Gambia's new President Adama Barrow, who is waiting in neighbouring Senegal for the strongman of 22 years to leave.
AFP journalists at Banjul airport saw a Mauritanian plane standing by on the runway. Top officials said it was preparing to take Jammeh to the Guinean capital Conakry -- though by the early evening there was still no sign of the veteran leader.
An official from regional bloc ECOWAS -- which backed a threat of military intervention before Jammeh yielded and announced he would step down -- said "one or two villas" had been prepared for him in Conakry.
The agreement that finally saw the strongman give in to pressure to step down "foresees the departure of Yahya Jammeh from The Gambia for an African country with guarantees for himself, his family and his relatives," Abdel Aziz said on return to Nouakchott in remarks quoted by the official AMI news agency.
Diplomats had also mentioned Morocco, Equatorial Guinea and Mauritania as possible places of exile for Jammeh.
Jammeh's actions will be carefully monitored as he has previously agreed to step down after recognising Barrow as winner of the December 1 elections -- before completely reversing his position.
"I have decided today in good conscience to relinquish the mantle of leadership of this great nation with infinite gratitude to all Gambians," Jammeh said on state television early today.
After a calm night in Banjul, many only heard the news on waking, and greeted his declaration with a cautious optimism, aware of the leader's mercurial nature.
"God has heard our prayers!" said Sheikh Sham, a 34-year-old metalworker from the suburb of Kanifing west of Banjul.
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