British Foreign Office officials are playing down media reports that Libya is poised to accept responsibility for the Lockerbie bombing and pay compensation.
The reports saying Libya will make the admission and pay compensation of over €15 million to the 270 victims followed a meeting between representatives of the Arab state, and British and US officials in London.
The move would mean the lifting of the United Nations sanctions, imposed after the Pan Am flight 103 tragedy in 1988.
A Foreign Office spokeswoman has refused to give details of what she called a "useful session".
"We made further progress. Now the delegations are reporting back to the capitals to consult on the next stage," she said.
In 2001 Libyan Abdelbaset ali Mohmed al-Megrahi was convicted of killing 270 people by conspiring to bomb Pan Am flight 103.
He is serving his life sentence in Barlinnie Prison in Glasgow.