BEIRUT - Arab League chief Amr Moussa said on Thursday he had made progress towards a deal to resolve Lebanon's political crisis, but that there was no agreement.

"There has been progress and movement on several issues. There is room for an understanding and there are issues that require more effort," Moussa told a news conference before leaving Beirut.

The Arab League secretary-general, who has shuttled between leaders over the past three days, said the league's initiative would continue and that he would return to Beirut within days.

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He said that he hoped there would be an agreement to resolve the crisis based on the principle of "no victor, no vanquished".

Moussa said he hoped that there would be a period of cooling off of tensions that would include an end to street protests.

Earlier on Thursday, a senior political source said that Moussa had failed on to broker a deal to resolve Lebanon's political crisis.

"Moussa's efforts to broker a deal have failed," the source said. There was no immediate comment from the Arab League secretary-general.

The Lebanese crisis escalated after the Hezbollah-led opposition took to the streets to press its demand for veto power in the government of Prime Minister Fuad Siniora.

The opposition has declared Siniora's cabinet illegitimate and has been staging a round-the-clock protest in central Beirut since December 1.

The anti-Syrian leaders who control the cabinet have so far refused to yield. They say giving in would allow more Syrian and Iranian influence.