Sources: Two-month extension of payroll tax cut proposed

Washington (CNN) -- Senate negotiators were unable to work out a comprehensive deal on extending the payroll tax cut and instead are proposing a two-month extension, two sources said Friday.
The possible deal was being discussed with the caucuses of both parties in separate meetings Friday evening. To move forward, it would have to be approved by the full Senate in a vote that could come as soon as Saturday, and then voted on by the House.
According to a top Senate Republican source and a Democratic source, the two sides were unable to reach an agreement to extend the payroll tax cut and unemployment benefits for a full year.
Instead, they are proposing a plan to extend those programs -- and increased Medicare payments to doctors -- at current levels for two months.
The impasse involved how to pay for the programs for a full year, the sources said. However, the two-month extension would be fully paid for, according to the sources.