The negotiations between opposition parties PKR and DAP over the distribution of seats for the coming general elections have made positive progress, according to sources.

Sources from both parties expressed optimism on the outcome of the talks after three meetings were held since July 1. The last meeting was held on July 18.

Among the significant progress in the talks - concentrated on seats in the Peninsula at the moment - was that both parties reached a consensus on seats in Penang.

Initially, it was believed that there will be an overlapping of seats between the two parties in the state since both PKR and DAP have listed Penang as their frontline state.

It is speculated that Penang will witness a swing in votes, especially from the Chinese, for the opposition in the coming polls.

DAP holds four parliamentary seats in Penang whereas PKR's sole seat Permatang Pauh held by its president Dr Wan Azizah Wan Ismail is also there.

According to sources, a consensus is also expected to be reached soon on the seats being negotiated in other states.

"We can't reveal further since we have agreed to make public the details only after we conclude the whole exercise," said a source, referring to the gag order that has been imposed.

Deadline to be extended?

Under the gag order, only the PKR president, its de facto leader Anwar Ibrahim and DAP secretary-general Lim Guan Eng are allowed to make public statements on the talks.

The gag order was imposed following complaints of persistent 'leaking' of negotiation details to the media in previous talks.

Both PKR and DAP sources were tightlipped over the number of overlapping seats in the Peninsula that have yet to be resolved - although it has been described as "minimal."

However, one source said: "Negotiations for these remaining seats might hit a stalemate. On top of that, we have seats in Sabah and Sarawak that are yet to be discussed."

The negotiation teams from DAP and PKR are slated to meet again by early next week.

The two parties had wanted to conclude the talks by the July 31 deadline but this might be extended following hints that the elections could be held early next year.

The PKR-DAP negotiation teams are led by PKR vice-president Dr Lee Boon Chye, DAP's national organising secretary Tan Kok Wai and publicity chief Teresa Kok respectively.

Previously, PKR said it has identified 20-25 parliamentary seats in which DAP and PAS are also interested in

DAP had reportedly said it is eyeing 54 parliamentary and 115 state seats, while PKR is reportedly targeting 60 parliamentary and 120 state seats.