There was high optimism on Wednesday on a possible deal between the Yemeni legitimate government and the Southern Transitional Council as negotiations between the two sides continue in Saudi Arabia.

A source in the legitimate government told Asharq Al-Awsat on Tuesday that talks in the Saudi city of Jeddah have been ongoing, but, he rejected to give details.

The source also fell short of setting a date for the possible announcement of an agreement between the two sides.

“All parties are exerting efforts … However, we cannot determine when a final deal would be reached,” he said.

STC’s official spokesman, Nizar Haitham, told Asharq Al-Awsat that “all issues are being discussed.”

“Talks aim at striking a comprehensive deal to end all differences through a clear partnership,” he said.

Yemen’s Ambassador to France Reyad Yassin Abdullah told Reuters this week that an accord with the STC was imminent. "We are close to a deal," he said.

He added that coalition forces would be deployed in the city of Aden and that the aim was to have an agreement in the next few weeks.

The latest developments came as Saudi Deputy Minister of Defense Prince Khalid bin Salman held talks this week with Abu Dhabi Crown Prince Sheikh Mohammed bin Zayed Al Nahyan.

The two officials discussed "coordination and joint action in defense and military affairs.”

On Monday, an STC official told AFP that the two Yemeni camps have been for weeks in indirect and discreet talks with Saudi Arabia’s mediation.

The official, who spoke on condition of anonymity, said there has been "a lot of progress" in the past couple of days.

The agreement would stipulate that the government return to Aden and that the Security Belt Forces (that back the STC) be responsible for security under the supervision of the Saudis," a source informed about the negotiations told AFP.

The source also said that the deal would include "the participation of the STC in government".