Yet it would be wise to be cautious. There is the complex question of security arrangements for the Heights after any Israeli pullback, including the possibility of a monitoring role for the Americans. And no agreement will be implemented immediately. Israel wants to phase any pullback over a number of years and to link it to specific security concessions from Damascus. Moreover, any agreement signed by Mr Barak will have to be ratified by a national referendum in Israel - a political consideration which rouses deep suspicion in Syria.
American officials warn that the diplomatic road ahead remains hazardous.
Nonetheless, both Israel and Syria have good reason to press for an historic agreement. Mr Barak wants to make history as the Israeli leader who built on the Rabin legacy to deliver lasting peace to his people. A deal with Syria offers the prospect of an end to the costly war in south Lebanon. For Hafez al-Assad, a president who has suffered from poor health for years, the return of the Golan Heights would represent a national triumph. It might help seal the succession of his son to the presidency.