The Thai government has rejected a compromise deal offered by the Red Shirts protestors in Bangkok.
The protestors say they now expect a military crackdown within 48 hours.
Thai prime minister Abhisit Vejjajiva refused the compromise deal, arguing he could not negotiate with a group that was using violence and intimidation.
The Red Shirts had offered to extend their demand for immediate dissolution of the government for 30 days as long as elections were held within two months.
The prime minister says parliament must be dissolved when the time is right for Thailand.