Nobel Peace Prize winner Jose Ramos-Horta is leading the race in East Timor's presidential poll, an election commission official has said.
Nobel prize winner Jose Ramos-Horta is on course to be East Timor's next president, bringing congratulations from Australia and New Zealand.
With almost half the ballots counted, commission spokeswoman Maria Sarmento said he had won most of the votes cast.
Election officials said Mr Ramos-Horta had won nearly 70% of the vote, but the official result has yet to be declared.
Mr Ramos-Horta is competing against parliamentary speaker Francisco "Lu-Olo" Guterres.
His rival, Francisco "Lu Olo" Guterres, has reportedly conceded defeat. Although Mr Ramos-Horta has not yet formally declared victory, he has already made a speech vowing to heal the wounds of the troubled nation.
Final results are not due until Friday, but a clear winner may already be apparent by Thursday evening.
Australian Prime Minister John Howard was among the first to offer his congratulations to Mr Ramos-Horta, whom he called "a person of great dedication and... a good friend of Australia".
Observers say the poll was conducted peacefully and free of intimidation, raising hopes it may prove to be a turning point for the impoverished and violence-wracked nation.
New Zealand's Foreign Minister Winston Peters said he hoped to work with Mr Ramos-Horta "in the difficult task of strengthening [East Timor's] young and fragile democracy".
Confident
Mr Ramos-Horta, the current prime minister, is widely seen as more friendly with the West than Mr Guterres, of the ruling Fretilin party, who often takes a more leftist, nationalist line.
Mr Ramos-Horta, the current prime minister, had been the favourite to win the contest, but Mr Guterres also has strong support and is backed by the ruling political party Fretilin.
Hard work ahead
Mr Ramos-Horta is widely seen as more friendly with the West than his main opponents, while Mr Guterres often takes a more leftist, nationalist line.
The election commission said on Friday that, with all the ballots counted, Mr Ramos-Horta had taken 69% of the vote and Mr Guterres 31%.
"Jose Ramos-Horta leads for the time being," Maria Sarmento told a media conference in the capital, Dili.
The final result is expected to be officially released later after it has been given court approval, a commission spokeswoman said.
"In most districts he is leading with around 50-80% of the votes," she added.
Mr Ramos-Horta said the result was not a cause of celebration, but the start of five years of hard work ahead.
Mr Ramos-Horta himself sounded confident of success, telling reporters: "I am still awaiting official results because they are still being counted, but I could get 70-80%."
"I will honour what I told the people in the campaign: I will work for the poor, with the entire country, to unite it, and heal its wounds," he said.
East Timor's main newspaper, Suara Timor Lorosae, also forecast that the prime minister would gain 75% of the vote.
The result is a blow to the left-wing Fretilin party, which has been a major force in East Timor politics.
A spokesman for Mr Guterres told the Associated Press that the former resistance fighter remained still confident of victory, but repeated earlier statements that he would accept the result.
The AFP news agency reported that Mr Guterres had conceded defeat.
"In a democracy, whoever get the most votes wins," said Harold Moucho.
Earlier, he told the agency that he would accept the result, and prepare for next month's important parliamentary polls.
Whoever becomes the new president will succeed Xanana Gusmao, who has led the nation since it won independence five years ago, after breaking free from decades of Indonesian rule in 1999.
"For me, winning or losing is a normal thing. For me personally, as Lu-Olo, it is alright [if I lose]," he said.
Mr Gusmao did not seek re-election as president, but hopes to become the next prime minister, a much more powerful position.
Observers hailed Wednesday's run-off as peaceful and free of intimidation - in contrast to the first round, which was marred by irregularities and fighting between rival supporters.
He has already announced his intention to run in parliamentary elections in June.
This has raised hopes that the vote may prove to be a turning point for the impoverished and violence-wracked nation.
Hopes and fears
The outgoing president Xanana Gusmao - who has led the nation since it won independence five years ago, after breaking free from decades of Indonesian rule in 1999 - plans to run for the more powerful position of prime minister in June's elections.
Turnout was estimated at up to 80%, with many voters expressing their hopes for a change to the poverty-stricken nation's fortunes.
"If Ramos-Horta wins it will not be a victory over Lu-Olo but a victory for East Timorese democracy and values," said Maria Fernandes, a 46-year-old school teacher.
"I hope Horta will be able to embrace all Timorese," she told the AP news agency.
Almost half of the nation's workforce is unemployed, while violence has also blighted many people's lives.
Last year dozens of people were killed and tens of thousands fled their homes in clashes between rival military factions that toppled the government.
Some 1,200 Australian-led UN peacekeeping troops, backed by a similar number of UN police officers, have been helping to ensure security during the election.
