Reuters reports:

Iraqi President Jalal Talabani said on Saturday that he hoped a draft constitution would be ready on Sunday. "If God is willing, tomorrow it will be ready," Talabani told a news conference.

Talabani said two key issues were still under discussion. "There are no obstacles but discussions on federalism in the south and the relation between religion and state," he said. Talabani said no issues would be postponed until later this year in order for the panel drafting the constitution to reach a self-imposed August 15 deadline for presenting the charter to parliament. Lawmakers have sent mixed signals on the talks on Saturday, with some saying they are close to clinching a deal and others pessimistic.