Photo used for illustrative purpose.

If an agreement is reached, the parties could announce it before Eid holiday starting on April 20, the sources said. The Saudi and Yemeni governments did not immediately respond to requests for a comment.

The move signals that regional rifts are easing after Saudi Arabia and Iran agreed to restore relations last month following years of hostility and backing opposite sides in Middle Eastern conflicts, including Yemen.

A visit by Saudi officials to Sanaa is an indication of progress in Oman-mediated talks between the kingdom and the Iran-aligned Houthi movement, which run in parallel to United Nations peace efforts.

A permanent ceasefire in Yemen would mark a milestone in stabilising the Middle East.

The discussions are focused on a full reopening of Yemen's ports and airports, payment of wages for public servants, a rebuilding process and a political transition, the sources said.

Saudi Arabia restarted its direct talks with the Houthi group last summer after both sides failed to renew a United Nations-brokered truce deal.

The UN hopes to resume a peaceful political process which would lead to a transitional unity government, if a ceasefire agreement is reached.

UN Special Envoy Hans Grundberg met senior Omani and Houthi officials in Muscat this week and discussed ways to make progress towards an inclusive Yemeni-led political process, his office said.

Reuters