  We realize the $U_q(\widehat{sl(2)})$ current algebra at arbitrary level in
terms of one deformed free bosonic field and a pair of deformed parafermionic
fields. It is shown that the operator product expansions of these parafermionic
fields involve an infinite number of simple poles and simple zeros, which then
condensate to form a branch cut in the classical limit $q\rightarrow 1$. Our
realization coincides with those of Frenkel-Jing and Bernard when the level $k$
takes the values 1 and 2 respectively.
