Tel Aviv - Negotiations over the formation of a new Israeli government have made "real progress" and a new coalition agreement between the ruling Kadima party and the Labour party could be signed in the coming days, Israel Radio reported Sunday.
Sources close to Labour Party leader, Defence Minister Ehud Barak, said the progress was achieved during a Saturday night meeting between representatives of the two parties.
A further meeting, to discuss Labour's economic demands, is slated to take place Sunday.