Bilbao newspaper El Correo Espanol had said that the current ceasefire announced last month would shortly be made permanent.

However, other reports have denied that an announcement is imminent. The movement's political wing, Herri Batasuna, is quoted as saying that the suggestion was political manipulation by the Spanish Government.

A party spokesman told AFP news agency that ETA had "sufficiently explained its position" in the ceasefire declaration and in a recent interview given to a BBC correspondent.

The Spanish Interior Minister, Jaime Mayor Oreja, said officials were closely following reports and he hoped the group would respond positively to government demands that it renounce armed struggle as a condition for peace talks.

"We hope that ETA confirms it, and then we'll see what steps we'll take," he said.

More than 800 people have died during the separatist group's 30-year campaign for a sovereign Basque state.

BBC correspondent Daniel Schweimler assesses the prospects of a lasting peace

Reports from the Basque region say the majority of ETA members are in favour of a permanent peace.

The Spanish Prime Minister, Jose Maria Aznar, recently demanded that ETA make what he called clear concrete commitments to begin a peace process.

Election praised

Sunday's peaceful election in the Basque region was the first since ETA halted violence.

The turnout, 73%, was the highest in the region's history. Politicians described it as a "victory for democracy".

The poll proved inconclusive as a guide to the crucial question of a separate Basque homeland. Support grew both for Herri Batasuna and for opponents of independence.