Annan also said the situation in Kenya was too volatile for a new election for at least a year, the BBC reported Tuesday. At least 1,000 people have died and 600,000 people have fled their homes amid rival ethnic groups.
The U.N.-led talks, now in their third week, between government and opposition teams were moving from Nairobi to an undisclosed location to get out of the public eye, Annan said.
Annan indicated a new agreement may include constitutional, judicial and electoral reforms, the BBC said. The opposition Orange Democratic Movement, led by rival Raila Odinga, and Kibaki's Party of National Unity reportedly tabled proposals for a power-sharing agreement.
The former U.N. secretary-general cautioned against speculating about any proposals, saying a deal may be struck as soon as three days.
"The current crisis is a big challenge but it provides an opportunity for Kenyan leaders to steer the country to a new level of stability," Annan told the country's members of parliament.