The proposal, thrashed out over eight months of talks, aimed to tackle decades of rebellion in Mali's north where Islamist militants are now fighting thousands of French and U.N. troops.
It was signed by the Bamako government in early March but, after consulting with their supporters, rebels said it did not go far enough towards granting autonomy for a desert region they call Azawad.
Tuareg sources familiar with the discussions said this week's talks had been initiated by Algeria's government and were aimed at finding an acceptable version of the original proposal.
But Attay Ag Abdallah, an official at CPA, one of five groups in the rebel coalition, said on Thursday that Algeria had so far rejected their request to add an amendment to the agreement with additional demands.
A Bamako-based diplomat said Algiers was applying pressure on the rebel coalition to sign.
The U.N. special envoy for the Mali mission earlier this week expressed optimism that the CMA would eventually sign the agreement. "I am optimistic that they will sign in the end because frankly there are no other real alternatives to engaging in this peace process," said Mongi Hamdi.
Unless mediators break the current impasse in talks, diplomats say the question of north Mali's political status could remain open indefinitely and could be exploited by Islamist militants active in the region.
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