But Ali Abdullah Saleh made no commitment to accept the plan.
Hundreds of thousands rallied in his support in the capital, Sanaa, while similar numbers of opponents met nearby and in the southern city of Taiz.
At least 120 people have died in two months of protests demanding the end of Mr Saleh's 32-year rule.
Huge crowds gathered near the main mosque in the capital Sanaa, calling on President Saleh to retain power until his term ends in 2013.In a very short speech, the 69-year-old leader said he welcomed the initiative of the Gulf Co-operation Council (GCC) that proposes a transfer of power to the vice-president.
But he said any arrangements had to be "within the framework of the Yemen constitution" - language which could mask objections to the plan. (read more)
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