Zelaya's lead negotiator Victor Meza had earlier said the two sides agreed on the wording of an agreement, and the army chief said a resolution was near.
But negotiators who met later with Micheletti in the presidential palace in Tegucigalpa said no final deal had been reached on the central issue of reinstating the leftist Zelaya, who was toppled in a June 28 coup.
"The dialogue on this point has been cordial and both sides have made important advances. However, at this moment, there is no final agreement on this point," they said in a statement.
The coup triggered Central America's worst crisis in years. It has become U.S. President Barack Obama's first major test in Latin America after promising better relations with the region.
The central issue in negotiations this week is the return of Zelaya to power, but Micheletti, a veteran politician who took office after the putsch, said on Wednesday that the Supreme Court would have to decide the future of his rival.
"As I understand it, Zelaya is asking that Congress determine if he can return or not," Micheletti said. "But it is the Supreme Court that has to decide."
The proposal put together by negotiators is also believed to contain plans for a interim government with representatives from both camps.
Army chief Romeo Vasquez, a key figure in the coup, said a deal appeared close. "I know that we have advanced significantly, we are almost at the end of this crisis," he told local radio HRN.
Holed-up in Embassy
Zelaya was toppled and forced into exile by soldiers but slipped back into Honduras last month and took refuge in the Brazilian embassy in the capital to avoid arrest.
On Wednesday, he met with negotiators in the embassy to review the proposed deal. "The final edition of this text is in discussion," Zelaya told reporters.
A wealthy rancher who wears a cowboy hat, Zelaya angered powerful conservatives when he was in power by building close ties with Venezuela's socialist President Hugo Chavez and toying with reform of the constitution, possibly to allow re-election for presidents.
The United States and other foreign governments have condemned the coup against Zelaya and threatened not to recognize elections called for November 29 if democracy is not restored before that date.
Heather Berkman, an analyst for political risk consultants Eurasia Group, said the looming elections had increased pressure on the de facto government to find a solution.
"The real concern of the political and economic elites is that the international community will not recognize the elections," Berkman said earlier on Wednesday.
The reinstatement of Zelaya would be a Latin American foreign policy victory for Obama, who came out against the coup in a break with past U.S. policy that tacitly supported the ouster of leftist presidents in the region.
Socialist leaders such as Chavez have said Obama needs to push harder to bring back Zelaya. At home, Obama has been criticized by Republicans for sticking by the leftist president.
