A deal between Britain's political parties on measures to regulate the press is "very close", Downing Street sources have said.
A deal has been struck between the three main political parties on measures to regulate the press, Labour's Harriet Harman says.
Talks were held overnight between the Lib Dem and Labour leaders and a Cabinet Office minister.
It comes after talks were held overnight between the Lib Dem and Labour leaders and a Cabinet Office minister on a new press watchdog.
They come ahead of a debate and vote in the Commons later on how to set up a new press watchdog.
Ms Harman also said that the planned vote on the issue due to be held in the Commons later will not go ahead.
The PM has opposed establishing a watchdog backed by law, but the other parties have pushed for it.
Full details of the deal are still to be revealed.
Labour sources confirmed the possible deal is based on their idea for a royal charter backed by legislation for a new self-regulatory body.
The prime minister had opposed establishing a watchdog backed by law, but the other parties have pushed for it.
Prime Minister David Cameron, who is facing a potential defeat in the Commons, also met Deputy Prime Minister Nick Clegg on Sunday as part of an attempt to reach a deal ahead of the vote.
Labour 'confident'
It is understood later discussions lasting for about five-and-half hours and ending at about 02:30 GMT took place between Mr Clegg, Labour leader Ed Miliband, shadow culture secretary Harriet Harman and Cabinet Office minister Oliver Letwin.
The prime minister was not present but was kept informed of progress.
Labour sources said they were "confident" the reopened talks at Mr Miliband's office had secured the basis of an agreement, to be announced in the Commons later.
Lord Justice Leveson's inquiry into press ethics in the wake of the phone-hacking scandal had called for a new, independent regulator backed by legislation, prompting months of political wrangling.
Last week talks ended abruptly, with Mr Cameron instead publishing his proposals - prompting Mr Clegg and Mr Ed Miliband to join forces to unveil rival plans.
'Greater powers'
Former Conservative MP Louise Mensch said a new regulator not bolstered by the law would still be more powerful than the Press Complaints Commission - the self-regulating body which upholds its own editors' code of practice, and judges complaints about newspapers and magazines against the code.
"For a start off you'd have more independent people sitting on the board, you'd have far greater powers to fine, apologies would be more prominent.
"I can remember when I had a run-in with one newspaper - a News International paper - they said they weren't going to provide the transcript of the interview because it backed up my case. That kind of thing won't be allowed to happen under the new regulator."
The PCC has already agreed to move into a "transitional phase" until a long-term replacement can be established, and the UK newspaper and magazine industry has been working on a new regulatory system.
The industry's proposed independent body would be able to fine those who breached its standards - up to £1m - and award compensation to victims. There would be an investigative arm, to look into serious wrongdoing by papers, and legally enforceable contracts, to bind publishers into the new system and ensure funding.
Mr Cameron believes enshrining a new body in law will harm press freedom but Mr Clegg and Mr Miliband insist on it - they say the rules would lack impact without it.
The other main differences in the rival royal charter, which Mr Clegg launched with Mr Miliband, involve not giving the press a veto over the members of the regulator and preventing it from being watered down or strengthened by future governments.
Harry Potter author JK Rowling - who gave evidence to the Leveson inquiry about press intrusion into her family's privacy - said victims were being "hung out to dry" over the reforms, urging MPs to "have the courage" to protect them.
Hacked Off, the campaign group representing some press abuse victims, called Mr Cameron's royal charter proposal a "shameless sell-out to his friends in the national press".
