The Penguins and Gov. Ed Rendell are expected to sit down again tomorrow evening to discuss funding for a new arena in Pittsburgh.

Allegheny County Chief Executive Dan Onorato and Mayor Luke Ravenstahl likely will join Mr. Rendell and representatives for the team at the session, the first since Jan. 4. It's uncertain whether Penguins co-owners Mario Lemieux or Ron Burkle will be there. The exact time and location are still being determined.

The parties will be trying to close in a deal to fund a new arena and to keep the Penguins in Pittsburgh under a new long-term lease. The meeting comes amid a growing sense of optimism among state and local politicians that an agreement is close to being completed.

"What I sense is a positive tone out of [Mr. Onorato, Mr. Ravenstahl and Mr. Rendell]," county Council President Rich Fitzgerald said today. "They feel optimistic that it's got a good chance."

The Penguins have repeatedly declined comment.

The two sides are trying to work out a deal under Plan B, Mr. Rendell's funding formula for a new arena. It originally included $14.5 million a year in contributions from slot machine gambling in Pennsylvania, plus $4 million a year from the Penguins, including $1.16 million annually in naming rights.

However, the Penguins annual contribution is expected to end up closer to $2.9 million, and a proposed $8.5 million upfront payment likely will be covered by the sale of the team-owned St. Francis Central Hospital to the city-county Sports & Exhibition Authority, which needs it as part of the new arena site.

More details in tomorrow's Pittsburgh Post-Gazette.