An announcement could be made as early as Sunday night for a deal that would create the world's largest beer maker, sources familiar with the situation said.

Negotiations could linger beyond Sunday, however, as many details were being tackled quickly, one source cautioned. The major issues regarding the price, board structure, executive roles had largely been resolved, however, sources said.

A deal would bring a friendly resolution to a month-long struggle that had threatened to go hostile as the two companies traded lawsuits and InBev set the stage to try to replace Anheuser's board of directors.

A deal would bring a friendly resolution to a month-long struggle that had threatened to go hostile as the two companies traded lawsuits and InBev set the stage to try to replace Anheuser's board of directors.

InBev last week lured reluctant target Anheuser to the table by raising its offer to $70 per share, up from $65 per share, marking a 27-percent premium over Anheuser's record-high stock price in October 2002.

The two companies and their advisers talked in New York over the weekend, working through details such as the name for the combined company, roles for Anheuser's executives and the structure of the board, sources said. The breakup fees if the deal collapses also were debated over the weekend, sources said.

InBev had already tried to soothe some of Anheuser's concerns last month, saying it would keep Anheuser's St. Louis, Missouri, home as the headquarters for the North American region. Anheuser's main Budweiser beer would also become the new company's "flagship brand."

InBev also had said the new brewer's name would "evoke Anheuser-Busch's heritage," and some Anheuser directors would join the new board. InBev had promised to maintain all of Anheuser's U.S. breweries, but Anheuser wants InBev to make firm commitments to its largest U.S. distributors, one source said.

Last week, the director of the Brewery and Soft Drink Workers Conference of the International Brotherhood of Teamsters asked to meet with InBev Chairman Peter Harf and InBev Chief Executive Carlos Brito, according to a letter posted on the union's Web site http://www.budwatch.com.

Led by Chief Executive Carlos Brito, InBev is known for ruthless cost-cutting.

The union, which represents workers at all 12 of Anheuser's U.S. breweries, asked for the meeting to discuss the initial offer so it could "fulfill our responsibilities to advise and protect our members."

It was unclear if any meeting took place between InBev and the union, however.

Any deal with Anheuser is complicated by its relationship with Mexico's No. 1 brewer, Grupo Modelo (GMODELOC.MX), which makes Corona, and 27 percent of China's Tsingtao Brewery Co Ltd (600600.SS). Modelo has the right to choose its partner and therefore has a role in the discussions of any acquisition of Anheuser-Busch.

Modelo, already 50 percent owned by Anheuser, is likely to embrace InBev's bid for Anheuser and hopes the Belgian brewer proves to be a more dynamic and innovative partner than the biggest U.S. brewer, analysts have said.

While Anheuser controls nearly half the U.S. market with brands like Budweiser, Bud Light and Michelob, InBev has strong positions Western Europe and Latin America and is growing in Eastern Europe and Asia.

A takeover of iconic U.S. company Anheuser had sparked an outcry from some politicians, including both Missouri senators and Democratic presidential candidate Barack Obama.

InBev, which was formed by the 2004 merger of Belgium's Interbrew with Brazil's AmBev, is based in Belgium and run by a mostly-Brazilian management team.

(Additional reporting by Martinne Geller, editing by Maureen Bavdek)