Rangoon's generals are said to be talking to Aung San Suu Kyi about their road map to democracy, which includes a national convention aimed at coming up with a constitution acceptable to all parties.
There is growing evidence that Burma's military rulers and the opposition leader Aung San Suu Kyi may be on the verge of agreeing to work together on shaping the country's political future.
There are secret talks taking place between them on a regular basis, and the pro-democracy leader has been allowed to meet some of the other top leaders of her National League for Democracy in preparation for an agreement.
Burma's military leaders are also about to take the first step towards drawing up a new constitution by reconvening the National Convention next month after a nine-year adjournment. The National Convention is to draft the principles upon which the new constitution will be based. For the national reconciliation process to be credible, Ms Suu Kyi and the NLD would have to be involved.
Ms Suu Kyi is now almost certain to be released from house arrest within the next few weeks and the NLD allowed to re-open its offices across the country.
The ``closed temporarily'' sign on the NLD headquarters in Rangoon has been removed, according to eye-witnesses. This seems to point to the fact that Burma's military rulers are preparing to allow the pro-democracy leader and her party to function normally _ all part of the deal that is being discussed between the two sides.
``It is now essential that Daw Aung San Suu Kyi and other NLD leaders are released immediately, party offices re-opened and that the NLD and other political parties and groups are able to operate freely,'' said a western diplomat in Rangoon on condition of anonymity.
These are all things that are now likely to happen in the coming weeks. ``Aung San Suu Kyi will be fully free, able to meet other members of her party, and conduct normal political activities before the National Convention convenes,'' Burmese Foreign Minister Win Aung told the Bangkok Post recently on the Thai island resort of Phuket. ``The NLD will also be allowed to re-open their offices before the convention gets under way.''
But for this to happen, it seems likely that the regime must have struck a deal with the opposition leader, or at least feel it is in the process of doing so. ``We are working on creating a good atmosphere between us,'' said Win Aung. ``Before we fought, now we talk.''
There is no doubt that Burma's rulers have been talking to her while she is still under house arrest.
A delegation of three senior military representatives have been meeting Ms Suu Kyi once a month since December. These are the deputy military intelligence chief, Major-General Kyaw Win, who is regarded as close to leader Senior General Than Shwe, Home Minister Tin Hlaing, a supporter of Prime Minister Khin Nyunt, and the military intelligence liaison officer, Brigadier-General Than Tun.
Both sides seem to be happy with the level of discussion during these monthly sessions. ``The talks have been frank and open,'' according to military intelligence sources, ranging from the government's fear that the opposition leader is a pawn of the West and Ms Suu Kyi's support for sanctions.
The triumvirate is believed to have met Ms Suu Kyi in the past week or so, according to Rangoon-based diplomats. ``There must have been a deal struck during those talks on the NLD's participation in the National Convention,'' said a western diplomat who is responsible for relations with Burma. ``It is possible that she may also have sent a letter to Senior General Than Shwe pledging the NLD's commitment to the government's national reconciliation.''
But this is unlikely to be the case unless the government has promised to change the procedural rules of the National Convention and allow a free debate and discussion on the principles upon which the constitution is to be based. This is something which has not happened previously as everything was tightly control by the government-appointed committee which oversaw the convention's proceedings. All speeches had to be submitted to the censors and no impromptu interventions from the floor were allowed.
If a deal is on the table, Ms Suu Kyi would want to discuss this with the rest of the NLD's central executive committee, several of whom are still under house arrest. And this is just what seems to be happening at the moment.
At least one secret meeting between Ms Suu Kyi and some of the other NLD leaders has taken place, according to an Asian diplomat who closely follows developments in Burma.
They met around March 22. NLD officials are not prepared to reveal what was discussed at this meeting, and some continue to deny it even took place, so sensitive is the situation.
The next steps if a deal is to be struck may also involve Ms Suu Kyi meeting with the prime minister to seal any agreement that might have been reached between her and the military's negotiating team. The opening of the NLD offices and the release of all the NLD leaders should also happen in the next few weeks if the regime is committed to involving Ms Suu Kyi and the NLD in the National Convention.
The announcement of the reconvening of the National Convention has caught most Rangoon-based diplomats and seasoned observers by surprise.
``The fact that it was announced on local television seems to suggest that it was aimed at the domestic constituency rather than posturing for the international audience,'' said a Asian diplomat in Rangoon. ``It also shows the SPDC [State Peace and Development Council] is taking the initiative and not allowing international pressure to dictate to them. It emphasises the importance of the National Convention in the national reconciliation process and that means Aung San Suu Kyi's release is less significant.''
While there have been growing signs in Rangoon over the past few weeks that the regime was preparing to release Ms Suu Kyi after the Water Festival celebrations for the Burmese New Year next week, there has been little evidence that the National Convention was to about to start its work any time soon.
It seems it may have been the strong urging of the Chinese deputy prime minister, Wu Yi, who has just completed a significant visit to Rangoon, that may have convinced Senior General Than Shwe to allow the prime minister to take the first real step in the government's road map to democracy.
``It is difficult to see how a constitution drafting process in which the participants are not free to discuss and debate issues, within their organisation and with the wider population, could be viewed as credible, or could lead to genuine national reconciliation,'' said a western diplomat in Rangoon.
So while the announcement of the start of the National Convention on May 17 is another tentative step in General Khin Nyunt's national reconciliation process, its real significance will only emerge when the National Convention actually meets. Many diplomats in Rangoon fear that once the National Convention reconvenes it will then go into recess until after the rainy season.