Sources told Stark that they are now convinced the two sides will agree to a drug-testing plan soon. It won't be as extensive as, say, the Olympic drug-testing system. But it will institute a program to address steroid use and abuse.

The players could present their proposal as soon as Wednesday, one source told Stark.

"Everyone's going to test for illegal steroids,'' Chicago White Sox infielder Jeff Liefer said after the conference call.

Glavine said players want to prove "our sport is clean and if it's not, we'll do something to clean it up.''

Baseball has been without a drug agreement since 1985. Owners have proposed testing all players three times a year for performance-enhancing drugs and once a year for illegal drugs such as cocaine and marijuana.

Fehr is optimistic, based on continuing progress at the negotiating table. Nevertheless, it's almost certain player reps will meet Monday in Chicago.

An Aug. 16 strike date that has been speculated about recently seems out of the question now, since the meeting is scheduled for Aug. 12 and there has been continued progress in recent labor talks.

The union has privately talked about setting a date that gives it enough time for a deal to get done, but also allows enough time for a deal that would permit the postseason to take place if there is a work stoppage.

Negotiators spent most of their time Tuesday discussing the owners' proposals for debt regulation and new rules regarding the funding of deferred compensation. They did not discuss the central issues: management's proposals for increased revenue sharing and for a luxury tax that would slow the increase of player salaries.

''The key issues that will determine whether we have to set a strike date or not are still being talked about,'' Baltimore player representative Jason Johnson said. ''We'll find out on Monday what's going to be done.''

Negotiations for a deal to replace the one that expired Nov. 7 have intensified in the past 10 days, and the sides have reached agreements on minor issues.

''The state of negotiations is guarded optimism. We are at a very crucial point right now,'' New York Yankees player representative Mike Stanton said. ''The simple fact that we haven't set a date yet shows how much we understand it will affect the game and the fans. But we don't want the fact that we haven't set a date to be seen as some sign of weakness. We'll do what we have to do.''

Players fear that without an agreement, owners will lock them out or change work rules after the World Series. The union would rather have a work stoppage late in the season, when more pressure is on owners, than during the spring.

Tampa Bay's John Flaherty was wary about reports of progress.

''What you hear on TV and the radio and read in the papers can give you a very clouded picture,'' he said. ''I'm not sure it's as optimistic as that.''

While the sides are making progress on finding a middle ground on revenue sharing, the luxury tax will probably be the most divisive issue. Players were reluctant to agree to a luxury tax for the 1997, 1998 and 1999 seasons, and most owners felt that tax was ineffective.

The tax in the previous deal affected only the teams with the five highest payrolls and was at 34 or 35 percent, depending on the year. Owners are seeking a 50 percent tax on the portions of payrolls over $98 million. Players think such a tax, when combined with increased revenue sharing, would act like a salary cap.

''No one wants to strike, but the players will strike if that's what it takes to cut a deal,'' Liefer said. ''We get treated like it's a business, so we've got to act like it's a business.''

The Associated Press contributed to this report.