Hundreds of anti-government protesters in Bahrain have spent the night in Pearl Square, which was reoccupied on Saturday after police withdrew.
Jubilant protesters returned after riot police fired tear gas and shotgun rounds, injuring many, before leaving.
The kingdom's crown prince has been charged to lead talks but the opposition has set conditions.
Before talks begin, they want the prime minister to resign and political prisoners to be released.
The opposition also want guarantees that those responsible for the deaths of six protesters in the last week, including four killed at Pearl Square on Thursday when a protest camp was cleared, will be held to account.
Opposition figures have also said they want political reforms that will lead to a constitutional monarchy.
But some protesters have also called on King Hamad bin Isa al-Khalifah to step down.
'Terrible tragedy'
The BBC understands that Crown Prince Salman bin Hamad al-Khalifah has made contact with representatives of all of the country's political parties, including the main Shia opposition parties in the Sunni-ruled Gulf state.
"All political parties in the country deserve a voice at the table," the crown prince told CNN television late on Saturday.
"I think there is a lot of anger, a lot of sadness, and on that note I would like to extend my condolences to all of the families who lost loved ones and all of those who have been injured. We are terribly sorry and this is a terrible tragedy for our nation," he said.
He said protesters would be allowed to stay in the square, which has become the focal point of the anti-government demonstrations.
Protesters who camped out in the square overnight seem prepared for a long stay, setting up a makeshift hospital and erecting tents.
The situation was transformed on Saturday when the crown prince, who is deputy commander-in-chief of the armed forces, ordered troops out of Manama and back to their barracks.
Protesters flocked to Pearl Square, which had been surrounded by armoured vehicles, but encountered police who fired volleys of teargas and shotgun rounds.
Then, suddenly, they pulled out, leaving the square to thousands of jubilant demonstrators.
The withdrawal of the army from the streets of Manama had been one of the key demands of the opposition to enter into a national dialogue proposed on Friday by King Hamad.
Bahrain is one of several Arab countries to have experienced pro-democracy demonstrations since the fall of long-time Tunisian President Zine El Abidine Ben Ali in January. Egypt's Hosni Mubarak was forced from power on 11 February.
The majority Shia population in Bahrain have long said they are discriminated against when it comes to housing and government jobs. They have also been calling for greater political rights from the Sunni royal family.
But the protesters have been careful to describe their revolt as non-sectarian, chanting slogans such as: "There are no Sunnis or Shias, just Bahraini unity."
