Updated

A breakthrough in contract talks has been reached between Hollywood studios and striking writers and could lead to a tentative deal as early as next week, a person close to the ongoing negotiations said Saturday.

The two sides breached the gap Friday on the thorniest issues, those concerning compensation for projects distributed via the Internet, said the person, who requested anonymity because they were not authorized to speak publicly.

Although work remains to be done on elements of the agreement, prospects for a deal appeared solid, the person said. The tentative agreement would have to be approved by a majority of guild members.

The Writers Guild of America, whose 3-month-old strike has brought the entertainment industry to a standstill, began informal talks with top media company executives Jan. 23 in an attempt to reach a new deal covering governing work for film, TV and digital media.