HOLLYWOOD -- Hollywood's striking writers and major studios have resolved their key differences in contract negotiations, moving them closer to a final agreement that would end a three-month-old walkout.

After two weeks of talks, the parties bridged the gap Friday on the central issues surrounding how much writers should be paid for work that is distributed via the Internet, said three people close to the talks who asked not to be identified because the negotiations are confidential.

A final contract could be presented to the Writers Guild of America's board by late this week, the people said.

Attorneys from studios and the guild were meeting over the weekend to discuss contract language for the proposed agreement, which would have to be ratified by the union's 10,500 members.

Representatives of the Writers Guild and the studios declined to comment.