His comments, in an interview with the Washington Post, were published today as Morsi supporters staged fresh rallies in Egypt in defiance of government orders that their protest camps be broken up.
"What we need to do right now number one, of course, is to make sure that we stop the violence," said ElBaradei, a secular Nobel Peace laureate and former UN nuclear negotiator.
"Once we do that, we immediately have to go into a dialogue to ensure that the Brotherhood understand that Morsi failed. But that doesn't mean that the Brotherhood should be excluded in any way.
More than 250 people have been killed in recent weeks as clashes have erupted around the mass protests by the Muslim Brotherhood calling for Morsi's reinstatement.
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The Islamist movement, which dominated elections held in the wake of the 2011 overthrow of Hosni Mubarak, has refused to negotiate with the military-backed interim government.
The military drove Morsi -- Egypt's first democratically elected leader -- from power amid massive protests against his year-long rule.
"They need to cooperate. But they need of course to feel secure, they need immunity, they need to feel that they are not excluded. It's things we are willing to provide," he said.
But he also indicated more hardline voices in the security forces and interim government could prevail, raising the likelihood of violence.
"People are very angry with me because I am saying, 'Let's take time, let's talk to them.' The mood right now is, 'Let's crush them, let's not talk to them,'" he said.
"I'm holding the fort, but I can't hold it for very long.