Key obstacles to a deal include the return of property to tens of thousands of Cypriots who fled their homes in 1974, as well as the presence of troops.
Turkey still has 30,000 troops stationed in the island's north, whose presence Greece opposes. On Friday, Greek Cypriot President Nicos Anastasiades reiterated a call for all Turkish troops to leave. Greece is thought to have about 1,000 troops stationed on the island.
Turkish Cypriot leader Mustafa Akinci said one side demanding that the other remove its troops would rule out a mutually acceptable solution.
On Thursday, Turkish Foreign Minister Mevlut Cavusoglu had said discussions were "at a critical juncture" and that technical experts would now hold talks.
The meetings are likely to begin on 18 January, with a focus on thorny security issues, reports say.
What are the sticking points?
Media captionCould there be an end to decades of division?
Property: What should happen to the properties that Greek Cypriots had to abandon in 1974? Should they get the right to take their old homes back, or be compensated - and if so by how much?
Security: How can the security of the Turkish Cypriots be guaranteed if Turkey's estimated 30,000 troops leave? Greek Cypriots see them as an occupying force, so should some stay or should Turkey retain the right to intervene? Who would act as a guarantor of the deal? The EU, of which Cyprus is already a member, or the UK, which has two military bases on the island?
Power and the role of the EU: There is talk of a rotating presidency, but how would that work? And could a Turkish Cypriot president really represent the country from time-to-time at EU summits?
Territory: How much more territory should Greek Cypriots gain to reflect the fact that they make up the majority of the island's population? UN peacekeeping forces estimate that 165,000 Greek Cypriots fled or were expelled from the north, and 45,000 Turkish Cypriots from the south, although the parties to the conflict say the figures are higher.
The end goal is for the Greek Cypriot and Turkish Cypriot communities to share power in a two-state federation.
Any deal would have to win the support of both Cypriot communities in separate referendums.
While diplomats have made positive noises on the progress being made, Mr Erdogan said that Greece and the Cypriot government "still have different expectations" from Turkey.
Another obstacle, he added, was on a possible rotating presidency on Cyprus.
Instead of seeing four Greek Cypriot presidencies for every one by Turkish Cypriots, Mr Erdogan said he wanted a 2:1 balance in Greece's favour instead.
Media captionFor more than 40 years Cyprus has been a divided island.
1955 - Greek Cypriots seeking unification with Greece begin guerrilla war against British rule
1960 - Independence from British rule leads to power-sharing between Greek Cypriot majority and Turkish Cypriot minority
1963/64 - Inter-communal violence
1974 - Cypriot President, Archbishop Makarios, deposed in a coup backed by Greece's military junta - Turkey sends troops to the island, who then occupy a third of it in the north
1983 - Rauf Denktash declares breakaway Turkish Republic of Northern Cyprus, recognised only by Turkey
2004 - Cyprus, still divided, joins the EU, after a UN peace plan was backed by Turkish Cypriots but rejected by Greek Cypriots
Keep these in mind as you contemplate the direction of the American government over the past 50 years and especially since the Obama election.
The Goals of Communism
(as read into the congressional record January 10, 1963, from "The Naked Communist" by Cleon Skousen)
1. U.S. acceptance of coexistence as the only alternative to atomic war.
2. U.S. willingness to capitulate in preference to engaging in atomic war.
3. Develop the illusion that total disarmament of the United States would be a demonstration of moral strength.
4. Permit free trade between all nations regardless of Communist affiliation and regardless of whether or not items could be used for war.
5. Extension of long-term loans to Russia and Soviet satellites.
6. Provide American aid to all nations regardless of Communist domination.
7. Grant recognition of Red China. Admission of Red China to the U.N.
8. Set up East and West Germany as separate states in spite of Khrushchev's promise in 1955 to settle the German question by free elections under supervision of the U.N.
9. Prolong the conferences to ban atomic tests because the United States has agreed to suspend tests as long as negotiations are in progress.
10. Allow all Soviet satellites individual representation in the U.N.
11. Promote the U.N. as the only hope for mankind. If its charter is rewritten, demand that it be set up as a one-world government with its own independent armed forces. (Some Communist leaders believe the world can be taken over as easily by the U.N. as by Moscow. Sometimes these two centers compete with each other as they are now doing in the Congo.)
12. Resist any attempt to outlaw the Communist Party.
13. Do away with all loyalty oaths.
14. Continue giving Russia access to the U.S. Patent Office.
15. Capture one or both of the political parties in the United States.
16. Use technical decisions of the courts to weaken basic American institutions by claiming their activities violate civil rights.
17. Get control of the schools. Use them as transmission belts for socialism and current Communist propaganda. Soften the curriculum. Get control of teachers' associations. Put the party line in textbooks.
18. Gain control of all student newspapers.
19. Use student riots to foment public protests against programs or organizations which are under Communist attack.
20. Infiltrate the press. Get control of book-review assignments, editorial writing, policymaking positions.
21. Gain control of key positions in radio, TV, and motion pictures.
22. Continue discrediting American culture by degrading all forms of artistic expression. An American Communist cell was told to "eliminate all good sculpture from parks and buildings, substitute shapeless, awkward and meaningless forms."
23. Control art critics and directors of art museums. "Our plan is to promote ugliness, repulsive, meaningless art."
24. Eliminate all laws governing obscenity by calling them "censorship" and a violation of free speech and free press.
25. Break down cultural standards of morality by promoting pornography and obscenity in books, magazines, motion pictures, radio, and TV.
26. Present homosexuality, degeneracy and promiscuity as "normal, natural, healthy."
27. Infiltrate the churches and replace revealed religion with "social" religion. Discredit the Bible and emphasize the need for intellectual maturity which does not need a "religious crutch."
28. Eliminate prayer or any phase of religious expression in the schools on the ground that it violates the principle of "separation of church and state."
29. Discredit the American Constitution by calling it inadequate, old-fashioned, out of step with modern needs, a hindrance to cooperation between nations on a worldwide basis.
30. Discredit the American Founding Fathers. Present them as selfish aristocrats who had no concern for the "common man."
31. Belittle all forms of American culture and discourage the teaching of American history on the ground that it was only a minor part of the "big picture." Give more emphasis to Russian history since the Communists took over.
32. Support any socialist movement to give centralized control over any part of the culture--education, social agencies, welfare programs, mental health clinics, etc.
33. Eliminate all laws or procedures which interfere with the operation of the Communist apparatus.
34. Eliminate the House Committee on Un-American Activities.
35. Discredit and eventually dismantle the FBI.
36. Infiltrate and gain control of more unions.
37. Infiltrate and gain control of big business.
38. Transfer some of the powers of arrest from the police to social agencies. Treat all behavioral problems as psychiatric disorders which no one but psychiatrists can understand.
39. Dominate the psychiatric profession and use mental health laws as a means of gaining coercive control over those who oppose Communist goals.
40. Discredit the family as an institution. Encourage promiscuity and easy divorce.
41. Emphasize the need to raise children away from the negative influence of parents. Attribute prejudices, mental blocks and retarding of children to suppressive influence of parents.
42. Create the impression that violence and insurrection are legitimate aspects of the American tradition; that students and special-interest groups should rise up and use united force to solve economic, political or social problems.
43. Overthrow all colonial governments before native populations are ready for self-government.
44. Internationalize the Panama Canal.
45. Repeal the Connally reservation so the United States cannot prevent the World Court from seizing jurisdiction over nations and individuals alike.
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