Catalonia's separatist leader on Monday refused to say whether he had declared independence from Spain, calling for an urgent meeting with Prime Minister Mariano Rajoy to settle the country's worst political crisis in a generation.

Responding to a Monday morning deadline set by the central government to clarify his position, Carles Puigdemont wrote in a letter to Rajoy that "for the next two months, our main objective is to bring you to dialogue."

He called to meet with Rajoy "as soon as possible" to discuss the crisis but stopped short of giving the definitive "yes or no" demanded by Madrid after an ambiguous independence speech last week.

Madrid has threatened to impose direct control over the semi-autonomous region if the separatists do not abandon their independence drive.

European Union officials are keeping a close eye on developments amid fears that Catalan independence could put further strain on the bloc as it grapples with Britain's shock decision to leave.

Puigdemont had told regional lawmakers he was ready for Catalonia to "become an independent state" following an secession referendum on October 1 that went ahead despite a court ban.

But he immediately said he was suspending proceedings to allow time for negotiations with Madrid.

Puigdemont and some separatist allies want mediation with Madrid over the fate of the 7.5 million-strong region, an idea the central government says is a non-starter.

Rajoy gave Puigdemont until 10:00 am (0800 GMT) Monday morning to clarify whether or not he had declared independence, and said the central government was ready to take direct control of the region unless he backs down.

The separatist leader wrote that his "suspension of the political mandate given by the polls on October 1 demonstrates our firm will to find a solution and not confrontation.

"Let's not let the situation deteriorate further. With good will, recognising the problem and facing it head on, I am sure we can find the path to a solution," he wrote.

In the run up to Monday's deadline, Spanish interior minister Juan Ignacio Zoido said Madrid wanted a full climb-down from Puigdemont but was prepared for another indefinite response from the Catalan president.

"If that's the case, that will show that he doesn't want dialogue and so the Spanish government will need to take necessary measures to return to normality," Zoido told reporters at the weekend.

- Economy fears -

Catalonia, an economic heavyweight that accounts for a fifth of Spain's GDP, has its own language and distinct culture, but is deeply divided over independence.

Separatists argue the prosperous region is helping to prop Spain up, saying it pays more in taxes than it gets back and that a break from the rest of the country would allow it to prosper.

The Spanish government says growing uncertainty over Catalonia, which is deeply indebted to Madrid and which cannot borrow internationally, imperils Spain's recovery from the financial crisis.

The two biggest Catalan banks have already moved their legal headquarters to other parts of Spain, while ratings agency Standard and Poor's has warned of a recession in the region if the crisis drags on.
Puigdemont, a 54-year-old former journalist and father of two, is under intense pressure from Madrid and world leaders to back off, while being squeezed by his separatist allies to crack on with independence.

Rajoy said he is ready to invoke article 155 of Spain's constitution, allowing him to retake full control of Catalonia -- a so-called "nuclear option."

And Puigdemont's separatist allies have threatened mass strikes and protests in the event of a climb-down.

Soyrce:AFP