The unofficial pact has not been published yet, but sources say there is a key trade-off at its heart.
Palestinians would not demand the right of return for refugees.
In exchange, they would get sovereignty over one of the most disputed religious sites in the Middle East, Jerusalem's Temple Mount, known to Arabs as Haram al-Sharif.
If and when the deal is signed - supposedly in Switzerland over the next two to three weeks - it will be called the Geneva Accord.
Swiss diplomats have been nursing the process along for the past two years.
If the report is accurate, this is massive news. I would really like to know what the accord says about the settlement issue. Finally, some hope out of the Middle East.