United Nations Secretary-General Kofi Annan said the two sides could reach a final peace agreement this month.

"They are making very, very good progress," Annan said of the negotiations being held in Kenya.

"It is highly possible that before the end of this month, they will have concluded an agreement, and that will be another big New Year's gift to the people of Sudan and the people of Africa," Annan said in New York after he spoke to officials from both

sides.

A