Ambassador Mike Herzog told Israeli Army Radio that there remained "points to finalise" and that any deal required agreement from the government.
But he said "we are close to a deal" and that "it can happen within days".
Among the issues that remain is an Israeli demand to reserve the right to act should Hezbollah violate its obligations under the emerging deal. The deal seeks to push Hezbollah and Israeli troops out of southern Lebanon.
Hezbollah did not adhere to a UN resolution that ended the 2006 war between the sides that made similar provisions, and Israel has concerns that it could stage a Hamas-style cross-border attack from southern Lebanon if it maintains a heavy presence there.
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