Central American countries and the European Union have reached a free trade agreement in talks in the Spanish capital, an EU official told AFP on Tuesday.
A Central American delegate earlier said there was an agreement in principle and "we are in the final details," putting them down on paper.
"I am sure the deal is going to be closed ... in the next few hours," he said, adding that both sides had taken a flexible position.
European Commissioner for Trade Karel de Gucht and several Central American ministers called a press conference for 9:00 am (0700 GMT).
A little earlier, El Salvador television carried comments from the Salvadorean chief of cabinet Alexander Segovia, in Madrid, who said that talks had closed successfully.
"There was a show of flexibility by the European Union and with that we managed to get to an agreement," he said.