British prime minister, Mr Tony Blair, today said Britain had made "significant" progress towards a deal with the US on aid for Africa.
His comments came as he was urged by aid agencies - disappointed at the "drop in the ocean" aid offer from the US - to stand out for a better deal.
Mr Blair, who has White House talks with President George Bush tonight, welcomed Washington's announcement of a $370 million aid deal for Ethiopia and Eritrea - but stressed that was not the limit of the US administration's contribution.
Speaking to reporters at the British Embassy in Washington, Mr Blair was asked about progress towards his goal of an extra $25 billion in aid for Africa - a target he wants to achieve by the G8 summit he is hosting in Gleneagles next month.
He said: "I think we are a significant way towards a deal and that will be very important if we can do it.
"There are still issues we need to resolve but I'm increasingly hopeful we will get there."
Mr Blair, talking of the US aid announcement, said: "It's important we deal with the situation in Ethiopia and Eritrea but obviously there's a lot more that needs to be dealt with and as the administration has made clear this is not the only commitment they have made.
"My aim is by the Gleneagles summit we end up with the increase in aid that the Commission for Africa report said was needed - that's an extra $25 billion.
"Of course this announcement is important and we welcome what the administration has done but there's a lot more that needs to be done."
Mr Blair has resigned himself to the White House refusing to go along with Chancellor Gordon Brown's International Finance Facility scheme for debt relief in Africa, but believes what is important is that aid cash arrives in the continent, whatever the means.
But Oxfam urged Mr Blair to resist the temptation to water down his own ambitious proposals on aid, trade and debt.
Director Barbara Stocking said: "International public pressure is building on all of the G8 leaders.
"To waste this momentum now, to drop the bar and lower the ambition at this critical stage, would be seen by many as a betrayal of Africa.
"The minimum the prime minister should push for is increasing global aid by $50 billion and 100 per cent debt cancellation for the 62 countries that need it.
"Mr Blair needs to show that he will not countenance fudges, empty gestures or half-measures.
"Saving Africa has to remain a higher priority than saving face."
There was deep disappointment at the US aid announcement from across the aid sector.
Jonathan Glennie, a senior policy analyst from Christian Aid, said: "The sum of $370 million is a drop in the ocean compared to what Africa really needs.
"Let us hope this is only his opening gambit and that he (President Bush) comes to Gleneagles with a realistic and proper offer that will begin to match some of the expectations in Tony Blair's Africa Commission."