There is cautious optimism a deal will be reached

Talks between the US, EU, Australia, India and Brazil have brought the possibility of agreement closer, a negotiator told Reuters news agency.

The Geneva meeting is the first major summit since the breakdown of talks last September in Cancun, Mexico.

Poorer countries are demanding richer states cut farming subsidies, which they say deny them access to markets.

Wording 'agreed'

The WTO has set itself a deadline of midnight on Friday to agree deals in the farm and industrial sectors, on services and on a new customs' code.

They (the five) assume that they have given some political guidance for what would be a reasonable compromise Key negotiator How the talks are being viewed in Ethiopia

A negotiator told Reuters that key member states had agreed how to word all the points in a document on the highly-controversial topic of agricultural reform.

WTO chief Supachai Panitchpakdi will present the full text on Thursday afternoon.

"They (the five) assume that they have given some political guidance for what would be a reasonable compromise," the negotiator said.

But some developing countries, as well as some richer farming nations, saw the back-room discussions as a repeat of earlier problems with WTO negotiations, where key elements had been settled between small groups of powerful states.

The failure of nations to agree on farming subsidies led to a break down in the Cancun talks last year.

Brazil this week led a developing nations' push to get the US to end subsidies to its farmers, which they say means they cannot compete on the world market.

African countries have indicated they will not sign new deals unless Benin's demand that the US stop subsidising cotton farmers is taken into account.

The WTO's 147 members agree in principle to cut barriers - such as government subsidies and taxes - to stimulate international trade.