The Sri Lankan government said today it would give in to a key Tamil Tiger demand to reopen the island's main north-south highway if the rebels halt attacks.
The statement came just hours after a soldier was killed in an ambush.
Weekend peace talks in Geneva collapsed over the government's closure in August of the A-9 highway, which runs through rebel territory and to the isolated army-held Jaffna peninsula in the north.
The government had refused to reopen the road saying rebel artillery fire made it unsafe.
Analysts say the closure is also helping curb rebel movement and their funds including "tax" collected from those using the highway in their territory.
"If they behave well, we will open the A-9," Health Minister and chief government negotiator Nimal Siripala de Silva told a news conference on his return to Colombo today.
The Tigers were not immediately available for comment on the offer, but have said they will only consider resuming talks once the road is open.
De Silva's offer came after suspected rebels ambushed a truck carrying troops in the northern district of Vavuniya in which one soldier died and three others were injured.