Arab League chief Amr Moussa worked with rival Lebanese leaders on Wednesday on a draft agreement to end Lebanon's political crisis, but wide gaps remained, political sources said.

Moussa is mediating in a tense standoff pitting an anti-Syrian coalition with a majority in parliament and government against an opposition led by Hezbollah.

Prime Minister Fouad Siniora, who has Western and Saudi support, has so far rejected demands by Hezbollah, which is backed by Iran and Syria, for a decisive say in government.

The opposition has staged an open-ended protest in central Beirut since December 1. It has declared the government illegitimate and this week raised its demands by calling for early parliamentary elections.

"There are understandings under construction," Moussa told reporters after another round of separate talks with Siniora and parliamentary speaker Nabih Berri, a Hezbollah ally.

Lebanese political sources close to the talks said Moussa had drafted a paper covering the points on which he hoped both camps could eventually agree.

"The draft is still in its primary stage," one source said. "It is full of holes and there are still many differences."

The source said Moussa held talks in Beirut on Tuesday with an Iranian envoy, whose visit had not been publicized.

In an interview with Dubai-based Al Arabiya television, Iranian Foreign Minister Manouchehr Mottaki said Iran had invited Moussa for talks with Iranian officials in Tehran.

Mottaki also said it might hold talks with Saudi Arabia on ways to defuse the crisis. "We may have contacts with the Saudi officials in the coming few days," he said.

The showdown in Lebanon reflects regional tensions with Saudi Arabia showing increasing alarm at Iran's growing influence in the region, backed by its ally Syria.

COMPLEX ISSUES

The source said the draft was a work in progress covering four main issues at the core of the standoff.

He said it proposes that both sides form a committee to study a law setting up a U.N.-sponsored special court to try suspects in the 2005 killing of former Prime Minister Rafik al-Hariri and other political attacks over the past two years.

It also stipulates forming a national unity government, a deadline on when consultations would start on a new president of the republic and on a timetable for a new electoral law.

The sources said there was no agreement yet on the formation of the government. Moussa had proposed expanding Siniora's cabinet by adding six ministers to his original lineup of 24.

The opposition wants 11 ministers -- which would give it a third plus one seats and effective veto power. Siniora seems willing to give it 10 ministers, with 19 ministers from the majority, insisting that the remaining minister be neutral.

The opposition was also demanding the majority agreed to early parliamentary elections. The majority wants early presidential elections to replace pro-Syrian President Emile Lahoud, whose term expires in November next year.

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