Negotiators are focusing on three key points that derailed last weekend's talks, including Iran's nuclear programme, the Strait of Hormuz and compensation for wartime damages.
The United States is discussing holding a second round of peace talks with Iran in Pakistan and is optimistic about reaching a deal, the White House said on Wednesday.
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"Those discussions are being had" and "we feel good about the prospects of a deal," Press Secretary Karoline Leavitt told reporters, adding that further talks "would very likely" be in Islamabad.
Her comments come after President Donald Trump raised hopes on Tuesday that the war in Iran was nearing an end, saying it is "very close to over."
"I view it (the war) very close to over," Trump said in an interview with Fox Business News.
"You know what? If I pulled up stakes right now, it would take them 20 years to rebuild that country. And we’re not finished. We’ll see what happens. I think they wanna make a deal very badly," he added.
Trump told the New York Post that a second round of talks could happen "over the next two days."
United Nations Secretary-General António Guterres also said it was "highly probable" that talks will restart, citing a meeting he had with Pakistan’s Deputy Prime Minister Ishaq Dar.
Pakistan's Finance Minister Muhammad Aurangzeb said its "leadership is not giving up” on efforts to help the US and Iran achieve an end to the war.
Meanwhile, Israel’s Prime Minister Benjamin Netanyahu said on Wednesday that Israel and the US are fully aligned in their objective to contain Iran.
"Our American friends keep us constantly updated on their contacts with Iran. The objectives of the United States and our own are identical," he said in a televised speech.
"We want to see enriched material removed from Iran; we want to see the elimination of enrichment capability within Iran; and, of course, we want to see the (Hormuz) strait reopened," he added.
Strait of Hormuz remains blocked
Trump's statement comes as the ceasefire that is set to expire on 22 April remains on shaky ground, with the US pressing ahead with its blockade on Iranian ports and Tehran issuing fresh threats in response.
Negotiators are focusing on three key points that derailed last weekend's talks, including Iran's nuclear programme, the Strait of Hormuz and compensation for wartime damages, according to an official involved in the mediation efforts who spoke on condition of anonymity.
Despite the fragile truce oil prices fell on Wednesday and US stocks rose in hopes of an end to the war.
The war began on 28 February with joint US-Israeli airstrikes on Iran, prompting daily missile and drone strikes by Tehran across the region.
Shortly afterwards, Iran effectively shut down the Strait of Hormuz, a critical shipping route, which sent shockwaves through global markets.