In a move which is bad news for President Clinton, Ms Monica Lewinsky has reached an immunity agreement which apparently will result in her testifying that she had a sexual relationship with the President.
Last January she testified on oath that she never had such a relationship, as did Mr Clinton but there are now widespread media reports, not officially confirmed, that she will admit to sexual intimacy. But Ms Lewinsky may maintain her denial that he asked her to lie as part of a cover-up of their alleged affair.
This dramatic development follows a meeting with her lawyers at their Washington office yesterday. Crowds gathered on the pavement outside the office and cheered the arrival of Ms Lewinsky from her Watergate apartment.
Soon afterwards her lawyer, Mr Plato Cacheris, came out to announce that Ms Lewinsky would testify to a Washington grand jury investigating her relationship with the President and whether he encouraged her to commit perjury. She has been granted "transactional immunity", the lawyer said, in exchange for "full and truthful testimony" but he refused to give any details of what she will say.
The White House press secretary, Mr Mike McCurry, baffled the press corps when he said that "the President is pleased that things are working out for her". He pointed out that the media do not know what Ms Lewinsky is going to testify and said he believed the President's denial of a sexual relationship.
Immunity means Ms Lewinsky will not be charged with perjury over her denial of a sexual affair last January. Ms Lewinsky's mother, Ms Marcia Lewis, has also been granted immunity as part of the deal. Ms Lewis was in jeopardy because she allegedly urged her daughter to lie about her relationship.
Ms Lewinsky has been resisting for the past five months attempts by the Independent Counsel, Mr Kenneth Starr, to get her to testify to the grand jury about her relationship with the President. She wanted full immunity from prosecution for possible perjury but Mr Starr refused this until his office had an opportunity to interview Ms Lewinsky.
The breakthrough came on Monday during a five-hour meeting between Ms Lewinsky and lawyers for Mr Starr, in New York.
Ms Lewinsky's admission of sex with Mr Clinton would put her at loggerheads with the President who has already given sworn testimony that he did not have such a relationship. They both made these sworn denials to lawyers for Ms Paula Jones who was suing Mr Clinton for sexual harassment. This case has since been dismissed but Mr Starr can use the testimony as part of his investigation.
President Clinton also denied to the American public twice on TV that he had sex with the former White House intern and Mrs Clinton has strongly supported him in this denial.
An admission by Ms Lewinsky of an affair, if confirmed, would put Mr Clinton in a difficult position. He would either have to stick to his denial and say she was lying or he would have to go back on his earlier denial and admit to some intimacy with Ms Lewinsky.
Mr Starr has now moved nearer being able to give a report to Congress on whether there are "credible" grounds to believe that President Clinton committed a serious crime which could lead to his impeachment. Perjury could be regarded as such a crime but not adultery on its own.