A White House signing ceremony was planned for later today.

``It's a go,'' a US official said.

US President Bill Clinton gave mediapersons the thumbs-up as he hurriedly boarded his helicopter for the trip back to Washington, suggesting that the snag with Israel would not prevent Netanyahu and Arafat from finalising the accord.

The dispute, which centered on Israel's insistence that Jonathan Pollard, a navy intelligence analyst convicted of spying for Israel be released, threatened to scuttle the accord just as Clinton was preparing to leave for Washington to make a formal announcement on the breakthrough deal after 19 months of deadlock.

A diplomatic source told AFP that US Secretary of State Madeleine Albright had informed thePalestinians of Washington's plans to release Pollard by Saturday.

Albright was quoted as telling Palestinian officials that US President Bill Clinton ``promised to recommend Pollard's release'' in a conversation last night with Netanyahu.

``She explained that Clinton is working to settle the problem and speed up the procedures for Pollard's release as quickly as possible,'' the source said.

Albright reportedly said they expected to release Pollard on Saturday so he could return home with Netanyahu by plane after the end of the Jewish Sabbath, he said.

However, a US official denied reports that Clinton ``has agreed to the principle of releasing Pollard''.

Netanyahu's spokesman also denied there was any agreement but confirmed the Israelis were seeking Pollard's release.

The talks appeared to have been wrapped early on Friday with Lockhart announcing the culmination of the negotiations mediated by Clinton.

``An agreement has been reached between the two parties,'' White House spokesman JoeLockhart said early today as the president left the Wye Plantation after 21 hours of talks with Netanyahu and Arafat and their top aides.

The president had spent about 78 hours over seven days at the secluded Wye River conference centre to press Netanyahu and Arafat to make ``the hardest decisions'' so their peoples can live together in peace.

Jordan's King Hussein also used his influence with the two leaders to urge them to agreement. Twice, he travelled to the secluded conference site and appealed for peace ``for their children and their children's children,'' said State Department spokesman James Rubin.

``I hope the parties will seize this opportunity and not retreat from the clear moment to capture the momentum of peace and keep it moving forward,'' Clinton said on his way to the rural Maryland talks yesterday.

For Clinton, now operating under a domestic cloud as he faces impeachment hearings, his investment in the talks was seen as a win-win situation as he put his administration on the line tobreak a 19-month-old peace process impasse.

The deal envisages elimination of anti-Israel language in the Palestinian founding charter and the release of scores of alleged Arab political prisoners by Israel, US and Palestinian officials said earlier.

Netanyahu said he wanted the full Palestine National Council to convene and revoke the PLO founding charter, which calls for dismantling the Jewish state.

But according to the Palestinian daily Al Ayam, which is close to the Palestinian Authority, Arafat has not agreed to reconvene the Palestine National Council.

The Israelis and Palestinians began meeting at this rural Maryland plantation on October 15. The Americans have pressed for agreement on interim issues in the 1993 Oslo peace accords.

After breaking the impasse, final status talks could begin on more tough issues, including Palestinian statehood, Jerusalem's future, borders and refugees all matters to be decided by a May 4 deadline.