Libya and the families of the 170 victims of the UTA airliner bombing are due to sign a compensation deal today, clearing the way for a UN vote to lift sanctions, Libyan sources said.
"Government officials have invited journalists in Tripoli to attend the signing ceremony in the next hours today," one source said.
"The two parties had a latest round of negotiations later yesterday and appeared to succeed in removing final hurdles before a final deal (can) be signed," said another source.
France has threatened to hold up the lifting of UN sanctions imposed on Libya for the 1988 bombing of a Pan Am airliner over Lockerbie, Scotland, if Libya does not satisfy the UTA families' demands.
French Foreign Minister Dominique de Villepin told reporters in Paris that he also expected a deal within hours.
"I think the families are very close to a conclusion," he said. "We hope in the next few hours an agreement can be reached."
France had threatened to veto a UN Security Council vote to lift the sanctions on Tuesday and the vote was postponed.
The sanctions, including an air and arms embargo and a ban on some oil equipment and financial assets, were imposed in 1992 and 1994 to pressure Libya to co-operate in the probe into the Pan Am attack.
A vote would clear the way for the families of the 270 Lockerbie victims to begin receiving compensation from Libya, which could eventually reach $10 million for each family.