The deal is an attempt to bridge divisions between senators - Republicans as well as opposition Democrats - who proposed letting all illegal immigrants earn US citizenship eventually and hardliners who reject anything that smacks of an amnesty.
Senator John McCain, a key figure in the debate over immigration reform, said US President George W. Bush was expected to endorse the compromise later Thursday.
The deal would put illegal immigrants in three groups. Those who have been in the US for more than five years would be allowed to stay and have to fulfil the requirements from the bipartisan proposal.
Those who have been in the country for less than five but more than two years would have to leave, but would be allowed to re-enter as temporary workers with a chance to become US citizens in the future.
Illegal immigrants who have been in the country for less than two years would be required to leave, but could get in line with all other people hoping to work in the US.
If the bill passes, Senate negotiators will meet with leaders of the House of Representatives, which approved a much tougher version of immigration reform in December, to iron out differences.
Before Thursday's compromise, the liberal bipartisan plan would have allowed all illegal immigrants to earn citizenship eventually after a waiting period, the payment of a fine and back taxes, and a criminal background check.
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