Mr Annan, the first UN chief to visit the island since 1979, spoke for nearly two hours with President Glafcos Clerides, the Greek Cypriot leader.

He then crossed the UN-manned Green Line for a meeting with Turkish Cypriot leader Rauf Denktash.

Both leaders have set June as a target date for a basic accord on the future of the island, divided since 1974. Talks so far however have failed to produce any significant breakthrough.

"As you know, I was always optimistic that we would find a settlement by June, [as soon as] the Greek Cypriots realise they are not our government," said Mr Denktash after his meeting with Mr Annan.

No comment

Mr Annan is attending a dinner in the UN-controlled buffer zone with both leaders on Wednesday evening.

The island's Turkish and Cypriot leaders set a June target date

On arriving on Tuesday night, he told reporters he had come to "highlight the great responsibility the two leaders have" and said he was "concerned at the slow progress" of discussions.

He added he would not make any other until his departure on Thursday afternoon, and has not commented on his meetings with either leader.

Impasse

The pressure is on to reach a solution before Cyprus enters the European Union, widely anticipated in 2003.

However, all the signs have indicated that the negotiations are in trouble.

One Turkish official described the two proposals on the table as being as different as night and day.

President Clerides is seeking the reunification of Cyprus as a single state with two distinct zones and a shared central government.

Mr Denktash, by contrast, is still believed to be insisting on recognition for the breakaway state of Northern Cyprus, which is currently recognised only by Turkey.