Khaleda Zia said the transfer of power will go ahead

She pledged to respect the constitution in a speech hours before her term in office expired at midnight on Friday.

Two people died in clashes on Friday as thousands took to the streets. Tension is high and police are out in force.

The opposition opposes the man chosen to lead an interim government which will organise elections due in January.

Peace call

Mrs Zia appealed for calm across the country as fresh violence broke out in a number of towns and cities.

Frequent clashes have taken place between the opposition and police

She promised the poll would be free and fair, and said the constitution would "safeguard a peace-loving and responsible nation".

"I urge everyone, including opposition parties, to maintain peace during the tenure of the caretaker government to ensure that a peaceful and credible election is held," she told the nation.

It was a matter of "great regret" that talks with the opposition aimed at defusing the current crisis had not produced results, she added.

There have already been sporadic outbreaks of violence, but the BBC's Roland Buerk in Dhaka says many people fear this is the calm before the storm.

He says the transfer of power threatens to spark a major confrontation between the government and opposition.

On Friday, one person was killed in the eastern town of Brahmanbaria during clashes between supporters of the outgoing Bangladesh Nationalist Party (BNP) and opposition Awami League.

Another died in violence near Dhaka between followers of the BNP and newly-formed Liberal Democratic Party, which contains high-profile defectors from the ruling party.

More than 100 other people were hurt in clashes in the capital and elsewhere.

Large numbers of police officers - many brought in from outlying districts - have been deployed in Dhaka ahead of the power transfer.

Our correspondent says everyone is waiting for Saturday when the caretaker government is expected to be sworn in.

'Stooge'

The Awami League object strongly to the man tipped to head the supposedly-neutral interim administration - retired chief justice KM Hasan.

Talks between the parties have so far failed

They say he is a ruling party stooge and will rig the polls.

They are threatening to paralyse the country if he takes office, with demonstrations and blockades of roads, railways and the country's main port.

The BNP about to leave power is calling for its supporters to be ready to take on opposition activists in the streets.

KM Hasan himself is remaining shut away behind his heavily-guarded gates.

It is not yet clear if he will even accept the daunting task of leading this bitterly-divided country, our correspondent says.

The elections are not expected to take place until January, so months of disruption lie ahead, he adds.

The man killed on Friday died in clashes between the newly formed Liberal Democratic Party and the ruling BNP near Dhaka.