Hollywood writers’ strike breakthrough

There is promising news from Hollywood for Julie Christie, Daniel Day-Lewis, Cate Blanchett (left) and all the other Oscar hopefuls: a breakthrough has finally been reached in negotiations to end the three-month-long writers' strike. A deal that would not only save the doomed Oscars ceremony but also re-boot the Los Angeles economy could be announced within a week.

The Associated Press news agency has reported that during informal talks between production companies and the Writers Guild of America the two sides have finally 'bridged the gap' over the crucial issue of writers' fees for projects distributed over the internet.

In the Los Angeles area, the writers' strike is estimated to have cost film and TV workers at least $650m in lost wages, with the wider economy losing over $1bn. The strike led to last month's Golden Globes being announced at a press conference instead of the normal glittering celebration. (Continued below)

While the writers' guild was prepared to negotiate a deal to allow the Grammys - the annual music industry awards - to go ahead next Sunday, there has been no hint of the guild being prepared to negotiate over the Oscars. With no one available to write the host's nor the presenters' banter, and with virtually no actors and directors prepared to walk through picket lines, the chances of a proper Oscars ceremony appeared hopeless until now.

Neither the WGA nor the Association of Motion Picture and Television Producers have commented on the AP report. But someone close to the talks, speaking on condition of anonymity, told AP that 'significant progress' had been made and a deal might be announced within a week.