The White House and bipartisan group of US Senators have agreed to a package of immigration reforms which could give legal status to millions of illegal immigrants.
Under a new bill, they will be eligible for temporary work visas while their applications for permanent residency are being considered.
President George W Bush described the agreement as historic, although the exact wording is yet to be finalised.
It must now be debated on the floor of the Senate, which could happen as early as next week.
The chances of this bill becoming law are good as Senators who opposed last year's legislation are now on board.
The bill would allow for the estimated 12 million illegal immigrants in the US to obtain what's described as a 'probationary document' which would allow them apply for a temporary four year work visa.
The permit will be granted if the applicant passes a background criminal test, an English language test and pays a fine.
They will also be allowed to renew for a further four years but will have to return home before applying for a green card.
The bill also contains a 'trigger mechanism' which means certain things must be put in place to strengthen border controls before the immigration reforms can be put in place.
This was described as a 'concern' by Niall O'Dowd of the Irish Lobby for Immigration Reform, but overall he described the bill as 'a huge step in the right direction.'