"If a new parliamentary coalition is established and a new candidate put forward, everything will be in line with the Constitution," Yulia Tymoshenko told a news conference, in a move seen as attempting to ease a political deadlock against the backdrop of a severe financial crisis in the country.
In a major turnaround, she said on Thursday she was ready to accept any conditions set by the president and his team to salvage the ruling coalition and avoid early parliamentary elections, ordered by President Viktor Yushchenko after his ruling "orange" coalition collapsed after Tymoshenko's bloc sided with the opposition to reduce the president's powers.
The Ukrainian Cabinet of Ministers has approved state budget amendments to allocate funding for early parliamentary elections.
Tymoshenko said further talks had been held Monday with the International Monetary Fund outlining the terms and conditions for granting Ukraine a loan of up to $14 billion to help stabilize the financial situation in the country.
Earlier Tymoshenko said that the IMF would only provide the country with credit if the early elections were postponed.
Yushchenko's decree calling new elections for December 7 and instructions to allocate money for the election campaign have been repeatedly blocked by the government led by opposition groups and the Yulia Tymoshenko bloc.
The government was ordered to allocate $80 million from the state reserve for the election campaign on Monday.