The leaders of Pakistan's governing coalition have resumed talks in Dubai on their pledge to restore judges sacked by President Pervez Musharraf.
The head of one of Pakistan's ruling coalition partners says a deal has been reached on how to restore judges sacked by President Pervez Musharraf.
A minister said PML-N leader Nawaz Sharif and the PPP's Asif Zardari had made progress, but still disagreed "on some legal and constitutional matters".
PML-N leader Nawaz Sharif said talks with the PPP's Asif Zardari had "yielded very positive results".
Nevertheless, Chaudhry Nisar Ali Khan said a decision was likely on Thursday.
Mr Sharif said he would give more details on Friday. There has been no word from Mr Zardari.
Both parties had agreed to restore the senior judges by the end of April after winning the parliamentary elections.
Both parties had agreed, after winning February's election, to restore the senior judges by the end of April.
Analysts say the failure to resolve differences over the issue has put the 30-day-old coalition government under strain and could strengthen the president.
Analysts say the failure to resolve differences about how the judges should be re-instated has put the 30-day-old coalition government under strain.
President Musharraf sacked the judges in November 2007, after declaring a state of emergency
'Consensus'
'Consensus'
The talks between the two main coalition leaders started on Wednesday at a hotel in Dubai, where Mr Zardari lived for many years with his wife, former Prime Minister Benazir Bhutto, who was assassinated in December.
The talks between the two main coalition leaders started at a hotel in Dubai on Wednesday.
After almost seven hours of negotiations, Mr Sharif agreed to delay his return to Pakistan until Thursday in an effort to broker an agreement, said Mr Nisar, a minister and PML-N parliamentary leader.
Mr Zardari lived in Dubai for many years with his wife, former Prime Minister Benazir Bhutto, who was assassinated in December.
A final decision on the issue will be made tomorrow Chaudhry Nisar Ali KhanPML-N parliamentary leader
"A lot of progress has been made... there is consensus on most issues but difference of opinion on some legal and constitutional matters," he said.
"The fact of the matter is that a final decision on the issue will be made tomorrow and I can say that very categorically," he added.
Before flying to Dubai, Mr Sharif said he wanted the coalition to stay together, but warned of "disastrous consequences for democracy and Pakistan" if the judges were not restored as promised.
He has insisted that judges who replaced those sacked last year should lose their jobs, because they had acted unlawfully in upholding Gen Pervez Musharraf's declaration of emergency rule in November.
He suggested that the old judges' re-instatement should be kept separate from constitutional reforms proposed by the PPP that include plans for the judiciary, but he said he would be "happy to discuss the package".
SACKED JUDGES March 2007: President Musharraf suspends Supreme Court chief justice, triggering protests6 Oct 2007: President Musharraf wins election3 Nov 2007: President declares state of emergency and sacks around 60 judges22 Nov 2007: New Supreme Court upholds Musharraf election win18 Feb 2008: New coalition government of PPP and PML-N emerge victorious in parliamentary polls30 April 2008: Deadline set by two parties to reinstate sacked judges Q&A: Pakistan's judges
Mr Zardari has argued that constitutional amendments are needed to prevent the judicial abuses that have occurred in the past.
These would limit the tenure and powers of the chief justice and prevent judges from getting involved in politics.
However, coalition insiders say Mr Zardari is also worried that, if restored, the judges could undo an amnesty deal that cleared him of corruption charges.
The judges, including the chief justice of the Supreme Court, Iftikhar Chaudhry, were sacked after Mr Musharraf declared the state of emergency.
At the time, the Supreme Court was preparing to rule on whether his re-election earlier that year was legal.
They were also due to rule on whether an amnesty the president granted Ms Bhutto and Mr Zardari in a number of corruption cases was legal.
