Talks between Mr Kibaki (L) and Mr Odinga have been difficult
A deal has been agreed between Kenyan President Mwai Kibaki and opposition leader Raila Odinga to form a cabinet - ending a long-running political crisis.
The new cabinet would be announced on Sunday, political sources said.
The crisis was sparked by controversial presidential election results in December, triggering violence in which some 1,500 people died.
A power-sharing deal was agreed in February but had been hampered by a row over the division of cabinet posts.
The deal was struck after hours of closed-door talks at the Sagana State Lodge, about 100 km (60 miles) north-east of the capital, Nairobi.
A political source close to one of the leaders told AFP news agency: "The two leaders held talks [Saturday] and agreed on a new coalition cabinet that will be unveiled around lunch time [Sunday]."
A Western diplomat confirmed to the agency a deal had been signalled and that the leaders wanted a cabinet in place "before parliament resumes on Tuesday".
The BBC's Adam Mynott in Nairobi says there have been apparent solutions before, so sceptics will refuse to accept that there has been a genuine breakthrough until they see firm evidence.
Talks seemed to have broken down this week as Mr Odinga held out for the 50-50 split in cabinet posts he said he was promised by the accord to end the post-poll violence.
In addition to those who died, another 600,000 were displaced in January and February.
Many thousands have yet to return to their homes.
Mr Odinga will become prime minister but there were no immediate reports on the make-up of the cabinet.
The cabinet will work on framing a new constitution that will tackle long-standing grievances over land, wealth and power.
The two leaders had come under intense international pressure to achieve a breakthrough following the February deal that was brokered by former UN Secretary General Kofi Annan.