Holbrooke

BELGRADE, Yugoslavia (CNN) -- U.S. special envoy Richard Holbrooke and Yugoslav President Slobodan Milosevic resumed talks on Sunday to try to seek a negotiated settlement of the crisis in Kosovo.

U.S. sources said Holbrooke was ready to talk for as long negotiations were useful before NATO decides Monday on airstrikes.

RELATED VIDEO
CNN's Mike Hanna reports
Windows Media	28K	56K
ALSO:
Yugoslav civilians ready WWII bunkers

Holbrooke emerged from seven hours of discussions with the Yugoslav leader on Saturday and said: "Nothing is changed. The situation is very serious."

However, the Yugoslav government's Tanjug news agency issued a statement saying all conditions necessary for a political settlement had been met and all U.N. demands fulfilled.

The United Nations and major powers want an irreversible commitment from Milosevic to end fighting with the ethnic Albanian majority in Kosovo and to start talks on autonomy for the southern Serbian province.

News Highlights: Gallery: The conflict in review News story archive Yugoslavia's Future: What's next for Yugoslavia Map: Who controls what The Peace Settlement: A guide to the peace plan Map: Serb troop withdrawal The Military Campaign: Strike damage assessment Atlas: NATO and the Balkans Background: Timeline: Trouble in the Balkans A who's who of key players Map: Kosovo and its neighbors A history of the KLA

"On Monday, NATO will meet to authorize action," Holbrooke said, referring to a NATO session in Brussels to authorize the military intervention.

"We, meanwhile, will continue an intense effort to find a peaceful, acceptable, fully verifiable compliance system as an alternative," he added.

The United Nations wants Milosevic to withdraw Yugoslav troops from Kosovo, allow the return of refugees and enter into serious negotiations with ethnic Albanian leaders on Kosovo's future status.

The major obstacle to an agreement appears to be Holbrooke's demand that Milosevic agree to an expanded international monitoring mission that would verify compliance with demands of the U.N. Security Council.

On Saturday in Brussels, NATO Secretary-General Javier Solana said ambassadors had worked out their differences and were now united in their resolve.

"If Milosevic does not comply, I can tell you that NATO is ready to act," Solana said.

The United States has ordered six U.S. B-52 bombers, a reconnaissance aircraft and 13 tanker planes to deploy to Britain for possible use in an attack.

Correspondents Brent Sadler, The Associated Press and Reuters contributed to this report.