Scotland Office minister Lord Dunlop claimed that there has been “significant progress” in the cash row over the devolution of income tax and benefit payments.
Hopes are rising in Whitehall that an agreement will be signed within days after months of wrangling over the “fiscal framework” underpinning the powers.
Government officials held more discussions over the weekend in a desperate bid to break the deadlock.
Finance Secretary John Swinney and Chief Secretary to the Treasury, Greg Hands, met in London for their tenth round of talks – and insisted progress was made.
Mr Swinney and Scottish Secretary David Mundell will explain their positions to Holyrood’s devolution committee today, when it had been expected a deal would have been struck.
But time is running out for scrutiny of any agreement by MSPs with the Scottish Parliament due to rise for the elections on March 23.
The House of Lords agreed to go ahead with detailed scrutiny of the Scotland Bill, despite the lack of a deal.
Tory peer Lord Forsyth called for the final day’s committee stage debate to be delayed until the fiscal framework is published.
But he withdrew his demand after warnings that any further hold-up would fuel SNP grievance.
Labour spokesman Lord McAvoy warned that to delay the Bill’s committee stage would “kill off” the negotiations and be seen as “Westminster tricks”.
Lord Dunlop told peers: “The fiscal framework negotiations are at a sensitive and critical point.
“Significant progress has been made and, while nothing is ever certain, a deal now seems within reach.”