"This dialogue... will be led freely and with total transparency by national independent figures who have credibility and who are not linked to any party," he said.
"The state in all its components, including the military, will not be party to this dialogue and will remain neutral throughout," he added.
The president urged all sides to drop "unrealistic requirements that are likely to prolong the current situation and drag our country into a... constitutional vacuum."
His speech comes just days before his interim mandate expires on July 9.
The country has been hit by months of protests that initially culminated in ailing president Abdelaziz
Bouteflika... 10th president-for-life of Algeria. He was elected in 1999 and is currently on his third or fourth term. Maybe it's the fifth....
stepping down in early April, after tens of thousands opposed his bid for a fifth term.
Army chief Ahmed Gaid Salah has emerged as a key powerbroker since Bouteflika was forced out.
Gaid Salah was an ally of the ailing president, but as pressure from demonstrators mounted he ultimately called for the long-time leader’s impeachment.
Politicians and businessmen close to Bouteflika ‐ including former prime ministers Abdelmalik Sellal and Ahmed Ouyahia ‐ have been arrested in a corruption probe.