Drudge links this report from Haaretz (Egyptian media) that is saying there is a tentative agreement between Israelis and Palestinians on a peace plan. Granted that it is from Egyptian media so I am reluctant to completely trust the story, but I like the sound of it:

Palestinians and Israelis have agreed in principle to proposals which could serve as the basis of a comprehensive settlement to the Israeli-Palestinian conflict, Egypt's official news agency MENA said on Tuesday.

Quoting unidentified high-level sources, it said the steps, including an Israeli-Palestinian ceasefire, had the support of both the United States and the European Union.

We have to take this with a grain of salt, though. The entire peace process is certainly far from over, even if there is agreement on the foundations of a deal. But we have to think that at some point in time we will have a plan that will be succesful; I refuse to believe that failure in this aspect will last forever. Could this be the start of success? With Arafat's passing, the chances are better now than ever. But as I said, we can't fail forever; at some point, peace will prevail.

UPDATE: Captain Ed has more from AFP.

UPDATE 2: Roger Simon has some stuff from Debka.