Ukrainian protesters and police have reached a stand-off in the capital Kiev, after dozens were killed in clashes on Thursday.
Thousands of protesters remain camped in Kiev's main square, despite attempts by the security forces to move them.
The presidency announced that a deal had been reached with the opposition after talks went on through the night.
It gave no details, but said the deal would be signed later. There is no confirmation by the opposition.
Earlier in the crisis, opposition leaders refused to agree any deals with the government until they were approved by the protesters.
The talks were brokered by French, Polish and German foreign ministers.
On Thursday, EU foreign ministers said in a statement sanctions would be put on some officials over the violence.
The US has warned Kiev that it would follow suit.
Thursday was the bloodiest day since the unrest began in November, with many of the anti-government protesters reportedly killed by police snipers.
Amateur footage appears to show police hostages - wearing blue uniforms with black collars - being kept in a line by men in plain clothes in Kiev
In all, 77 people - including policemen - have been killed since the violence first flared up on Tuesday, Ukraine's health ministry said.
Another 577 were injured.
Protesters had captured 67 police, the interior ministry said. A number of them were later released.
'Forces of peace'
On Thursday, the foreign ministers of France, Poland and Germany conducted several hours of discussions with Mr Yanukovych on a "roadmap towards a political solution" before going on to talks with opposition leaders.
They returned for another meeting with Mr Yanukovych in the evening and the talks continued late into the night.
Thousands of protesters on the Maidan remained on high alert overnight, amid fears of new police attacks
A video still released earlier shows a riot policeman standing next to a sniper firing in Kiev
Dozens of activists were injured, some seriously
Polish Prime Minister Donald Tusk said Mr Yanukovych had expressed willingness to hold early elections this year.
Mr Yanukovych's aide Hanna Herman was later quoted as saying that the president was ready to make concessions to "restore peace".
She added that "forces of peace" among presidential advisers defeated the "hawks".
The snap presidential and parliamentary elections are one of the key demands by Maidan activists and opposition leaders.
Currently, the presidential poll is scheduled for next year.
'Dismay'
Also on Thursday, the statement from an emergency EU foreign ministers' meeting in Brussels said "no circumstances can justify the repression we are currently witnessing".
EU foreign policy chief Catherine Ashton said the "prime responsibility" to get talks between the two sides under way lay with President Yanukovych.
She said ministers had expressed their "dismay" at the latest violence and had agreed to "suspend export licences for equipment for internal repression".
Implementation of the measures "will be taken forward in light of developments in Ukraine", she added.
The EU had until now refrained from imposing sanctions, preferring to emphasise dialogue and compromise.
US Vice President Joe Biden also warned President Yanukovych in a telephone conversation that Washington was ready to impose sanctions against Ukrainian officials guilty of ordering troops to fire on protesters.
The US state department had already announced visa bans on 20 members of the Ukrainian government but has not provided any names.
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