SAO PAULO - WITH the global economy entering a 'danger zone,' key officials are nearing a consensus on the need to revamp the financial system, World Bank President Robert Zoellick said on Saturday.

Mr Zoellick, speaking to journalists on the sidelines of a Group of 20 (G20) ministerial level gathering, said all countries see the need for developing a coordinated response to the economic troubles.

But he said it will take time to create a new global financial structure.

'All of us know it's a meeting at a time of historic challenge,' Mr Zoellick said.

'The food and fuel crises of the recent years have now been supplemented by the blow of a financial crisis. Virtually no country has escaped ... All countries are moving into a danger zone.'

Mr Zoellick, who last month said that the Group of Seven was 'not working' in fixing the economy but that a G20 system was 'too unwieldy' indicated on Saturday that a new system will take time to evolve but was inevitable.

'These global challenges require global solutions,' he said.

'We need to modernise the multilateral system to bring in the important developing country voices such as Brazil ...I think over the next two years we are going to see some real changes to the global system.'

But asked about how the Sao Paulo meetings were moving toward establishing such a new system, Mr Zoellick said, 'I think it's too early to say.' He said more will be known after the Nov 15 summit of G20 heads of state and government in Washington.

'I think this is one of those fluid periods where people are trying to get a sense of the right mix of countries and institutions to be able to solve problems in a way that is effective but also legitimate,' he said. -- AFP