After months of deadlock, is there at last a bit of movement in Israeli-Palestinian relations?
The Israeli Prime Minister, Ehud Olmert, is offering to release 'many' Palestinian prisoners and hold a 'serious dialogue' with the Palestinian Authority President, Mahmoud Abbas.
But there are two conditions.
The Palestinians must release the Israeli soldier, Cpl Gilad Shalit, who was captured by militants in June.
And they must set up a national-unity government committed to recognising Israel and renouncing violence.
So the onus is on the Palestinians to deliver - while at the same time maintaining the current fragile ceasefire in Gaza.
New mood
Things could still go wrong. But there is undoubtedly a new mood.
The current situation suits no one.
The Palestinians want to escape from the economic boycott imposed on them when their present government - led by the Islamist group Hamas - came into office in March.
The creation of a power-sharing government could give them an exit strategy.
The Israelis want to stop rocket attacks from Gaza and get their soldier back.
And Mr Olmert wants a success to compensate for his perceived mishandling of this summer's war between Israel and the Lebanese group Hezbollah.
Among Israelis and Palestinians alike there is now a profound weariness, and this is something leaders on both sides can capitalise on.
Obstacles
There are still a number of potential roadblocks.
Since the ceasefire in Gaza came into force on Sunday, there have been further rocket attacks.
And the truce does not extend to the West Bank, where Israeli troops have killed two Palestinians in an exchange of fire.
Moreover it is not yet clear if the two main Palestinian factions, Hamas and Fatah, have settled their differences over forming a new government.
For weeks they have been talking about a government of technocrats.
But they need to finalise the allocation of cabinet posts.
And they need to agree on a formula whereby the new government recognises Israel - something Hamas has so far consistently refused to do.
Without that, the current deadlock will persist.