The secret meeting at Crested Crane Hotel that ran from Friday to Sunday attracted representatives from seven opposition groups popularly called the Group of Seven or G7.
A statement issued yesterday after the talks said: "We have recognised the need for co-operation in our search for genuine multiparty democracy in the country and agreed that that co-operation should be enhanced and formalised."
A key opposition official who attended but declined to be named told The Monitor: "It is part of a series of strategic meetings we shall hold countrywide to dislodge the dictatorship."
The G7, which is currently involved in talks with government about the roadmap to multiparty politics in the run-up to the 2006 general elections, includes the Democratic Party, the Uganda Peoples Congress, the Reform Agenda, The Free Movement, the National Democrats Forum, the Conservative Party and the Justice Forum.
Kenyan lessons?
An official at the talks said the coalition, while still subject to modifications, is likely to resemble the National Rainbow Coalition (Narc) that brought Kenyan President Mwai Kibaki to power in December 2002, ending Mr Daniel arap Moi's 24-year reign.
The recommendations from the Jinja retreat, which was attended by mainly middle-cadre leaders, are to be tabled before a summit of senior opposition officials to discuss and possibly adopt.
Terego MP Kasiano Wadri, who attended the meeting, called on his fellow politicians in the G7 to swiftly identify a candidate to contest for the 2006 presidential elections under the banner of the coalition.
In 1996, DP, UPC and CP formed the Inter Political Forces Committee that jointly backed the candidature of DP chief Paul Ssemogerere for that year's presidential election.
He lost to President Museveni, who won by more than 75 percent of the vote.