"Suggestions made by Ganti Prasadam will be discussed with the state government and negotiations were likely to be complete and crisis resolved very soon, may be today," said interlocutor Prof G Hargopal, who along with Dandapani Mohanty met Prasadam for two hours in high-security Jharapada jail here.
State Home Secretary UN Behera also said the crisis was expected to be resolved very soon.
Prasadam's talks with mediators assumed significance as it came at a time when negotiation appeared to have reached a decisive stage.
Talks between Orissa government and mediators resumed for the third day after two of the three interlocutors met Prasadam in the jail here.
As Malkangiri Collector RV Krishna, a 2005 batch IAS officer, and junior engineer Pabitra Majhi spent the seventh day in captivity. Contentious Naxal demands like release of Maoists and tribals and withdrawal of BSF and CRPF from Koraput and Malkangiri were being discussed, officials said.
Prasadam, brought here from Koraput jail amidst tight security, sounded positive saying "now the common responsibility before us is to defuse the situation. The impasse should not not be allowed to continue for long," they maintained.
A close aide of top Maoist leader Ramakrishna, Prasadam has moved a bail petition before the Orissa High Court along with four other Naxals. The state government has decided not to oppose Prasadam's bail, they said.
Participation of Prasadam in the negotiations remained one of the major demands of the Maoists who had abducted Krishna and Majhi on Feb 16 from Chitrakonda area of Malkangiri district.
Prof Hargopal had earlier suggested to the state government that Prasadam's release from jail would help in ensuring safe release of the abducted officials.
Another Naxal Sriramulu Srinivasulu, whose release was also sought by Maoists, has moved bail plea before a Fast Track court in Malkangiri. The court is scheduled to pronounce the judgement.
While eight of the 14 demands of Maoists were settled between mediators and state government officials yesterday, discussion on the remaining six would hold key to resolution of crisis, sources said.