The International Crisis Group says there is an urgent need for political leaders in Bangladesh to ensure that people at large shape the future of the country.
In a statement issued on Monday, the group warns that a failure by moderate parties to respect democratic norms and come to an agreement could encourage the growth of militant Islamist forces.
The group's South Asia deputy director, Rhoderick Chalmer said there is no imminent threat of a major breakdown in Bangladesh, but added that the "system is fragile" and the international community should monitor it closely.
The statement follows Monday's sixth round of talks between the government and opposition, aimed at averting an opposition boycott of January elections. The talks broke down after just 20 minutes.
The International Crisis group warns that the impasse could result in a political vacuum that could be filled by a violent fringe.