The two sides from the conflict in South Sudan are meeting in Ethiopia's capital Addis Ababa, on the day a deadline expires for them to sign a peace deal, or face sanctions.
President Salva Kiir and rebel leader Riek Machar held meetings through the night to address outstanding obstacles.
Several previous ceasefire agreements have failed to hold.
Tens of thousands have died and more than two million have been displaced since fighting broke out in 2013.
South Sudan is the world's youngest country, having gained independence from neighbouring Sudan four years ago.
The leaders of Uganda, Kenya and Ethiopia are also at the summit, as part of an international peace-building effort which includes the US, UK, EU, Norway, China, the African Union and the UN.
Both Mr Kiir and Mr Machar have said they need more time to resolve key issues, including what power sharing in a transitional government would look like.
South Sudan's elusive peace:
- At least seven ceasefires agreed and broken since conflict started in December 2013
- Nearly one in five South Sudanese displaced by the current conflict, from a total population of 12 million
- Former rebel leader Salva Kiir became president of South Sudan, the world's newest state, when it gained independence in 2011
- South Sudan has been at war for 42 of past 60 years
Five obstacles to peace in South Sudan[1]
President Kiir had initially decided not to attend the talks, saying that a recent split within the rebel forces made it impossible to sign a lasting deal, because not all parties would be present around the negotiating table:
"A peace that cannot be sustained cannot be signed," Mr Kiir said on Sunday.
"You should sign something that you will enjoy. If it is signed today and then tomorrow we go back to war, then what have we achieved?"
Despite these obstacles, there is a "cautious optimism" that a deal can be signed today, reports the BBC's Emmanuel Igunza from the summit.
If the two sides fail to sign an agreement on Monday, the international community has said it will consider targeted sanctions against both sides, with the EU warning that that it will no longer be "business as usual".
In July, a UN report alleged that government troops had gang-raped and burned alive women and girls in the oil-rich Unity State, during an offensive against rebel forces.
The rebels have also been accused[2] of carrying out widespread atrocities, killing civilians in attacks on mosques and hospitals.
The conflict erupted in December 2013 after Mr Kiir accused Mr Machar, his sacked deputy, of plotting a coup.
Mr Machar denied the allegation, but then formed a rebel army.
Much of the fighting has been carried out along ethnic lines, between Mr Machar's Nuer group and Mr Kiir's fellow Dinka, the two dominant ethnic groups in South Sudan.
References
- ^ Five obstacles to peace in South Sudan (www.bbc.co.uk)
- ^ have also been accused (www.hrw.org)
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