Mr Gusmao became known as the 'poet warrior'
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Xanana Gusmao is a legend among the East Timorese people.
He fought an armed rebellion against Indonesian rule for two decades, played a major role in leading his country to independence, and still retains a pivotal position today.
When East Timor finally voted to break away from Indonesian rule in August 1999, he was the obvious candidate to become the first president.
But he repeatedly said he did not want the job, insisting he would rather be a pumpkin farmer or photographer.
"No, I do not want to become president, because if you look at almost every revolutionary struggle, the leaders who are there while in opposition become leaders of a new nation and they have nothing more to give,' he once said.
Nevertheless he took the job, and has been at the forefront of his country's politics ever since.
After leading his nation for the first tentative years of independence, he said he would step aside from the presidency early in 2007.
But soon afterwards, he announced his intention to run for prime minister.
Despite the fact his party won less votes than the main rival, Fretilin, in parliamentary elections in June 2007, he managed to form a coalition with smaller parties and was chosen by new President Jose Ramos-Horta to become the new prime minister.
'Poet warrior'
Born in the town of Manatuto on 20 June 1946, Jose Alexandre Gusmao was the second son in a family of nine children.
He spent four years at a Jesuit seminary in Dare, in the hills overlooking the capital Dili, and attended Dili High School.
He did three years compulsory service in the colonial Portuguese forces and later worked in the local government department of the colonial administration.
When Indonesia invaded after Portugal withdrew in 1975, Xanana Gusmao fought an armed rebellion that lasted for more than 20 years. He spent more than six years in an Indonesian prison and under house arrest.
While in prison he wrote poetry and painted, earning the description "poet warrior". It added to the almost supernatural status he attained during his life in the jungle.
One such myth was that he had powers to turn into a creature to evade capture.
He was released on 7 September 1999, just days after East Timor's landmark referendum result was announced.
The vote sparked a wave of bloodshed led by pro-Jakarta militias opposed to independence.
While president, Mr Gusmao made it clear he favoured an amnesty for those accused of the violence - putting him at odds with Fretilin, which used to be his own political party.
Mr Gusmao and his second wife, long-time Australian partner Kirsty Sword, have three children. He also has two children from a previous marriage.