BEIRUT, Lebanon - Optimism prevailed Tuesday after a third round of talks between pro-Syrian House Speaker Nabih Berri and anti-Syrian majority leader Saad Hariri to end Lebanon's four-month political crisis.

According to a government source, the talks late Monday were 'more optimistic than before.' The source refused to disclose any details about the discussions.

Sources close to Hariri saidt the two leaders were 'making progress on some difficult issues,' adding: 'I think both leaders are heading towards a solution.'

Meanwhile, news reports about Saudi Arabia working on hosting a reconciliation meeting between Lebanon's anti-Syrian parliamentary majority and the pro-Syrian opposition, met great caution.

'This idea has been explored during the meetings between Berri and Hariri, but until a positive solution comes out of the talks inside Lebanon, there will be no such meeting,' said a source close to Berri.

According to political observers, the meeting in Saudi Arabia would be along the lines of talks which produced a deal on a Palestinian unity government between Fatah and the Islamist movement Hamas last month.

Oil-Rich Saudi Arabia has been spearheading attempts to resolve the political crisis between the Western-backed government of Fouad Seniora and the opposition, led by Hezbollah, which has Iranian and Syrian backing.

'Everybody is working towards achieving a solution to the Lebanese crisis before the March 28 Arab summit in the (Saudi) kingdom,' a government source said.

The opposition quit the government in November 2006 after Seniora and his allies, who are backed by Saudi Arabia, France and the United States, refused to give in to its demands for veto power in cabinet and early parliamentary elections.

A key demand of the ruling anti-Syrian majority is a tribunal to try suspects in the 2005 assassination of former five-time premier Rafik Hariri.

The majority feels that the opposition is trying to obstruct the formation of such a tribunal to protect Syria, which was widely blamed for the Hariri assassination.

The tribunal has yet to win parliamentary backing and the opposition fears it may be used as a political tool.

A UN ongoing probe has implicated Syrian and Lebanese officials in the killing of Hariri, but Damascus has vehemently denies the charges.

According to Hezbollah's Christian ally, general Michel Aoun, the crisis still needs a 'proper mechanism' to end it.

'The proper mechanism starts by forming a new government in the country. We can then proceed to approve the international tribunal to try suspects in the Hariri case,' Aoun was quoted as saying. -DPA