The official BSS news agency quoted her as saying the election would be held by the year 2000 - at least six months before it is required.

Sheikh Hasina's party, the Awami League, won the elections in 1996 and her government would normally be expected to complete its five-year term in office.

Sheikh Hasina: Promises to abstain from calling general strikes

The prime minister said she wanted Bangladesh to begin the next century with new hopes under a new government.

She also said that if her party were to sit in opposition again, she would not use general strikes as a form of protest.

Business leaders in Bangladesh have complained about the detrimental effects of general strikes on the nation's economy.

The business community issued a plea to exercise restraint during the recent 60-hour general strike called by the opposition parties.

The opposition Bangladesh Nationalist Party (BNP) promised more strikes unless early elections were called.

Promise of fair play

Earlier, the finance minister had said his party would abstain from calling strikes but only on condition that the opposition promised the same.

Now, however, Sheikh Hasina has made an unconditional promise and also followed it up with the assurance that the next general election would be held on a level playing field with a caretaker government presiding over the process.

The summer floods left thousands prey to disease

Though the prime minister did not explain why she envisaged an early election, it is thought that the government may want to prevent the poll overlapping with the conference of the Non-aligned Movement which Bangladesh is hosting in 2001.

Analysts say the ruling party may also be trying to put the opposition parties on the defensive by assuming a more responsible stance.

Strike disruption

Bangladesh was crippled last week as stock markets, ports and most businesses shut down for three days because of a general strike called by the opposition in protest at alleged government repression.

Sheikh Mujib supporters

At least two people died and scores were injured after violence erupted between strikers and government supporters in the capital, Dhaka.

Police and paramilitary forces were deployed in great numbers.

The confrontation came to ahead after 15 people were sentenced to death for the murder of Bangladesh's first leader and the father of the current prime minister, Sheikh Mujibur Rahman, in 1975.

The opposition says it is being targeted in a related murder case.