Jose Ramos-Horta said he was winning in most districts

With counting still continuing, the Nobel Peace Prize winner said he was o­n course to win up to 70% or 80% of the votes cast in Wednesday's run-off.

He is up against the former rebel leader Francisco "Lu-Olo" Guterres.

Final results may not emerge until Friday, in a vote seen as critical for the future off the impoverished nation.

"I am still awaiting official results because they are still being counted, but I could get 70-80%," Mr Ramos-Horta said.

"In most of the districts, in all the western districts, I think I am winning."

East Timor's main newspaper, Suara Timor Lorosae, also forecast that the prime minister would gain 75% of the vote.

The winner will succeed Xanana Gusmao, who has led the nation since it won independence five years ago.

Young people want change Voices from a troubled nation

Turnout was estimated at up to 80%, with many voters expressing their hopes for a change to the poverty-stricken nation's fortunes.

"If Ramos-Horta wins it will not be a victory over Lu-Olo but a victory for East Timorese democracy and values," said Maria Fernandes, a 46-year-old school teacher.

"I hope Horta will be able to embrace all Timorese," she told the AP news agency.

Almost half of the nation's workforce is unemployed, while violence has never been far away.

Last year, dozens of people were killed and tens of thousands fled their homes in clashes between rival military factions that toppled the government.

Some 1,200 Australian-led UN peacekeeping troops, backed by a similar number of UN police officers, have been helping to ensure security during the election.