Just two days after it appeared several complications would at least stall, or even kill, a trade of malcontent wide receiver Terry Glenn from the New England Patriots to the Green Bay Packers, the two sides moved very close to a deal Tuesday night.

League and team sources told ESPN.com that the two teams have agreed on compensation, likely a fourth-round choice in the 2002 draft and a conditional choice in 2003, and that the Packers and Glenn have reached an understanding on most principle elements of a contract.

"We're very hopeful that we'll be able to find a resolve as to all of the parties and the issues very shortly -- hopefully tomorrow," James Gould told The Associated Press on Wednesday night. "I've been going around the clock for days without much sleep."

Gould declined to comment on whether contract terms had been worked out. "Everybody is hopeful, but there is nothing signed and we're continuing to talk," he said.

The breakthrough came when Glenn significantly reduced his contract demands with Green Bay. He and agent Jim Gould, apparently in an effort to recoup much of the compensation Glenn forfeited during his suspension-marred 2001 season, were seeking a $7 million signing bonus.

For the trade to be consummated, Glenn must drop the various grievances he filed against the Patriots, and he apparently has agreed to that stipulation. An arbitration hearing is scheduled for Friday, but will be canceled if Glenn drops the grievances.

Without such an agreement, the Pats would be forced to absorb a salary cap hit of about $8 million, a total that represents the remaining pro-rated share of the $11.5 million signing bonus Glenn got when he signed a pricey contract extension two years ago. Because he was suspended on three different occasions in 2001, the team has withheld scheduled installments on the bonus.

Until the contract demands were reduced, the Packers, who are rebuilding their receiver corps and covet a player with Glenn's talents, had balked at his proposals. A part of the attractiveness of Glenn is his current contract, which calls for modest base salaries of $675,000 (2002), $1.065 million (2003), $1.45 million (2004), $1.34 million (2005), $1.73 million (2006) and $3.04 million (2007).

Those base salaries apparently would be adjusted if the trade is completed.

The Packers likely will lose wide receivers Bill Schroeder and Corey Bradford in free agency and are asking Antonio Freeman to restructure his contract or face the possibility of being released. Therefore, the team needs a quality veteran wide receiver, particularly one with deep speed, and Glenn has told friends he will make concessions for the opportunity to play with Brett Favre.

Glenn, 27, was New England's first-round choice in the 1996 draft, the seventh man taken overall that year, and he established the league record for receptions by a rookie, with 90. He has played in 68 games, including 63 as a starter, and has 329 catches for 4,669 yards and 22 touchdowns.

His suspensions limited Glenn to just four games and one start in 2001 and he had 14 receptions for 201 yards and one touchdown. The trade would be a gamble for the Packers, because Glenn would face a one-year suspension with another violation of the NFL substance abuse policy.

Len Pasquarelli is a senior writer at ESPN.com.