Mexico's Grand Warlock predicted US President Barack Obama would fail to win re-election and two more Latin American leaders would be diagnosed with cancer, in a traditional New Year's forecast Tuesday.

The Grand Warlock, or "Brujo Mayor" in Spanish, leads a Mexican tradition of "brujeria" or sorcery centered in the southeastern city of Catemaco.

The Grand Warlock, also known as Antonio Vazquez, said that Venezuelan President Hugo Chavez, who claims to have beaten an unspecified cancer, would have a "terrible relapse."

Argentina's President Cristina Kirchner, Brazilian President Dilma Rousseff, former Brazilian leader Luiz Inacio Lula da Silva and Paraguay's Fernando Lugo have been diagnosed with cancer in recent years.

Chavez suggested last month that the spate of cancer among leftist leaders could be a US plot.

Vazquez, who sports a long grey beard, put the cancer cases down to "witchcraft" against Latin American leaders, during a Mexico City news conference giving his 25th annual predictions.

Mexico's Institutional Revolutionary Party (PRI), which ruled for more than 70 years to 2000, would return to power with its candidate Enrique Pena Nieto winning the presidency in July, according to Vazquez, who bases his predictions on tarot card readings and observations of the stars.

Vazquez, who claims to have a 75-80 percent accuracy rate, last year said the euro would weaken and recession would return to developed economies but he also predicted, incorrectly, that a Latin American leader would be assassinated.