WASHINGTON (AP) — Shifting from confrontation to cooperation, Senate leaders of both parties expressed optimism Thursday that agreement was near on extending this year's payroll tax cut, renewing unemployment benefits and averting a federal shutdown.

Majority Leader Harry Reid, D-Nev., opened the Senate's morning session by saying he and the chamber's top Republican have held talks to resolve remaining disputes. With lawmakers itching to return home before the holidays, Reid said he and Senate Minority Leader Mitch McConnell, R-Ky., hope they can reach a deal "that would get us out of here in a reasonable time, in the next few days."

Standing just across the aisle, McConnell agreed with Reid — a sharp contrast to recent days, when the two have fired sharp partisan volleys at each other.