The British and Spanish governments will take part in a meeting on the future of Gibraltar in Madrid on July 12th.
The two governments have given themselves until early summer to resolve the controversial issue and the scheduling of the talks will spark speculation that a deal may be in the offing.
Gibraltarians have so far boycotted the talks, taking place under the 'Brussels process', because they see them as an attempt to manoeuvre them into giving up British sovereignty.
The British government has pledged that any deal agreed with Spain will be subject to the approval of the people of Gibraltar in a referendum.
The announcement of the Madrid meeting was made following informal talks between the British Foreign Secretary Mr Jack Straw and his Spanish counterpart Mr Josep Pique.
The British Foreign Office said that Gibraltar's Chief Minister Mr Peter Caruana would be invited to the Madrid talks, as he has been to all previous formal meetings.
But the British Prime Minister's official spokesman acknowledged that differences remain between the two sides.
PA