ADDIS ABABA, (Reuters):

Sudan lost its bid to assume the rotating leadership of the African Union to Ghana yesterday after regional leaders snubbed Khartoum for a second time because of international outrage over bloodshed in Darfur.

Alpha Oumar Konare, the AU's top diplomat, told reporters Ghanaian President John Kufuor would take the post of AU chairman. "By consensus it is President Kufuor."

He said Sudan had supported the decision, which avoided a damaging dispute that would have eclipsed the main summit agenda, including raising peacekeeping troops for Somalia.

Before the swift decision yesterday, some analysts had predicted the dispute over Sudan would dominate the summit and only be resolved at the last moment.

Delegates said a deal was worked out through the mediation of South African President Thabo Mbeki and a group of seven respected presidents or 'wise men'.

VIOLENCE

The 2007 chairmanship was promised to Sudanese President Omar al-Bashir a year ago when he was passed over for the post because of the violence in Darfur, which experts estimate has killed 200,000 people and driven 2.5 million from their homes.

Critics say that far from abating, the violence has worsened in the last year, and government-backed Arab militias have killed thousands. Bashir has repeatedly blocked deployment of U.N. peacekeepers to bolster an overstretched African Union military mission of 7,000 soldiers and monitors.

Sudanese Foreign Minister Lama Kol told Reuters: "This was our suggestion. We voluntarily suggested this so that the foreign elements who were trying to divide the continent over this issue would not succeed ... what was important was to take the decision for the unity of the continent."

U.N. Secretary-General Ban Ki-moon told the summit a solution must be found to the "tragedy" of Darfur. "We must open a new and different chapter. The toll of the crisis remains unacceptable," he said.