The presidents of Sudan and South Sudan meet again Monday after failing to reach a deal in talks Sunday on border disputes and oil sharing.
President Omar al-Bashir of Sudan and the president of South Sudan, Salva Kiir, are holding the talks in the Ethiopian capital, Addis Ababa.
They met for several hours Sunday and were seen holding a friendly chat outside the hotel room after the meeting broke up.
Officials from both countries expect the presidents to shortly finalize agreements on outstanding issues that nearly pushed them into war earlier this year. They include dueling claims on the oil-rich Abyei region.
Sudan also accuses the south of arming rebels in two southern regions, while South Sudan accuses the Sudanese army of bombing raids.
The United Nations gave the two Sudans until this past Saturday to reach an agreement or face possible sanctions.