Burkina Faso's coup leaders will release the detained interim President Michel Kafando, a statement read on national television said.
They have also agreed to the "principle of dialogue", as two West African presidents come to mediate.
Mr Kafando and the prime minister were detained by the presidential guard during a cabinet meeting on Wednesday.
At least three people have died in protests after an ally of ex-President Blaise Compaore was named leader.
The US, France and the African Union (AU) have condemned the takeover in the former French colony.
- Africa Live: Burkina Faso coup updates
The influential Balai Citoyen civil society group has put the number of people who have died in demonstrations against the the presidential guard (RSP) in the capital, Ouagadougou, at 10.
An unknown number of protesters have also been detained.
- How the coup unfolded
- What is behind the coup?
- The coup in pictures
The coup leaders imposed a night-time curfew across the West African state, and have ordered the closure of land and air borders.
Elections were due to be held on 11 October nearly a year after a popular uprising forced Mr Compaore, the long-time ruler of the West African country, from power.
The headquarters of Mr Compaore's Congress for Democracy and Progress (CDP) party were ransacked in Ouagadougou as news of the coup spread, the AFP news agency reports.
The AU and regional body the Economic Community of West African States (Ecowas), has called for the immediate release of "hostages", referring to Mr Kafando and interim Prime Minister Isaac Zida.
Senegal's President Macky Sall, who is going to mediate along with Thomas Boni Yayi of Benin, said he was heading to Ouagadougou in his role as the current chairman of Ecowas.
Mr Compaore was accused of committing widespread abuses
The elite presidential guard has been trained, in part, by the US. It is the most powerful armed group in Burkina Faso and often disrupted the activities of the transitional government as it tried to cling to the privileges it enjoyed under Mr Compaore's rule.
It is seen to be close to him, and is not popular on the streets. So its seizure of power could be a recipe for serious violence.
The transitional government might have made two mistakes - preventing politicians loyal to Mr Compaore from running in next month's elections and allowing the Reconciliation Commission, formed to heal wounds after the end of his authoritarian rule, to release a report calling for the presidential guard to be disbanded.
Some argue that a newly elected president would have had greater legitimacy to take such action.
Mr Compaore is currently in exile and was accused of committing widespread abuses, and trying to change the constitution to extend his term in office.
Some of his key allies had been barred from contesting in the election.
A statement issued by the coup leaders said the country would be led by Gen Gilbert Diendere, Mr Compaore's former chief-of-staff.
In media interviews, he said he had no contact with Mr Compaore and would do everything to "avoid violence that could plunge the country into chaos".
The BBC's Yacouba Ouedraogo in Ouagadougou says the house belong to the general in Yako, about 100km (60 miles) north-west of the capital, had been set alight.
An earlier announcement on state television said wide-ranging talks would be held to form a new interim government that would organise "peaceful and inclusive elections".
Transitional parliamentary speaker Cheriff Sy called for people to "immediately rise up" against the coup, and declared himself the leader.
Seven things about Burkina Faso:
- It is one of the world's poorest countries - its main export is cotton
- A former French colony, it gained independence as Upper Volta in 1960
- Capt Thomas Sankara seized power in 1983 and adopted radical left-wing policies - he is often referred to as "Africa's Che Guevara"
- The anti-imperialist revolutionary renamed the country Burkina Faso, which translates as "land of honest men"
- Mr Compaore took power in the coup that killed Mr Sankara, and ruled for 27 years, until he was ousted last year following street protests
- People in Burkina Faso, known as Burkinabes, love riding motor scooters
- It is renowned for its pan-African film festival, Fespaco, held every two years in Ouagadougou
The 'heroes' of Burkina Faso's revolution
The rise and fall of Blaise Compaore
Guide to Burkina Faso
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