Despite talk among aides to the Palestinian President, Mr Yasser Arafat, of a new crisis in Israeli-Palestinian peace negotiations, the two sides were last night still working feverishly towards a deal, in the hope of having it ready for signature at a ceremony tentatively planned for Cairo on Thursday.
Egypt is now attempting to help mediate the agreement, and its ambassador to Israel, Mr Muhammad Bassiouny, predicted last night that it would be achieved in the next few days - in time for the US Secretary of State, Ms Madeleine Albright's, visit to the region late this week.
The Israeli Prime Minister, Mr Ehud Barak, was more circumspect, saying only that "within two or three days we'll know whether we can sign a deal". The chief Palestinian negotiator, Mr Saeb Erekat, said there were "genuine efforts being exerted to reach an agreement".
The so-called new deal is an amended version of the existing Wye River accord, signed last October by Mr Arafat and the former Israeli prime minister, Mr Benjamin Netanyahu, but halted by Mr Netanyahu soon afterwards.
In one of the more ironic threats to have been issued by Israel to the Palestinians in recent years, Mr Barak is warning that he will go ahead and implement this original stalled deal unless the two sides can quickly tie up the amended version.
Since the original deal provides for further West Bank land hand overs to the Palestinians and further prisoner releases, that may sound less like a threat, more like a dramatic move forward.
Mr Barak's interpretation of the Wye deal differs sharply from that of the Palestinians - both on the timetable for West Bank troop withdrawals, and as regards the numbers and categories of prisoners to be freed.
Under the amended deal, the Palestinians are hoping to secure the release of 650 "security" prisoners - including those convicted of violent attacks on Israelis. Mr Barak is hoping to condition further withdrawals from the West Bank on moves toward a wider, framework deal on the knottiest issues still in dispute - including the future status of Jerusalem, Jewish settlements in occupied territory, refugee rights of return, and so on.
AFP adds: The bodies of two Israelis who disappeared on Sunday have been found near the northern town of Afula, near the border with the West Bank, police said yesterday. They said initial inquiries suggested they were killed by Palestinians. The couple had been walking in Israeli territory not far from the autonomous Palestinian town of Jenin, police added.