He said the proposal would have to be fair and will benefit both countries.

Speaking in Parliament, Professor Jayakumar was outlining the new approach to relations that has been agreed between Singapore and Malaysia.

Last month, there was a whole flurry of cross-Causeway visits between the prime ministers of Singapore and Malaysia.

But where has all this left ties between the two neighbours?

Professor Jayakumar said: "In the new era, we have to start a new chapter in bilateral relations without being saddled by the deadlocked issues of the old era."

Singapore prefers the issues to be resolved by third parties, but the new Malaysian leader wants another shot at talks.

Mr Abdullah Badawi is supposed to get back to Mr Goh Chok Tong with specific proposals.

The leaders also agreed that any proposals will be first discussed at the prime minister's level before officials are involved.

And if the dead knots cannot be untied, the two countries will turn to third parties.

One issue, which Mr Abdullah may raise is the idea of replacing the Causeway with a bridge.

Johor politicians and businessmen linked to the tender recently suggested changing the design - from a crooked bridge to a straight one.

But this is not the real issue.

Singapore's position is that the bridge, which would cost the Republic more than half a billion dollars, is just not cost-effective.

Professor Jayakumar said: "We need to know what is being proposed to Singapore that would justify us agreeing to demolish the Causeway, and build our side of a full bridge at such considerable cost. There can be agreement only if the proposals are fair and that both sides benefit, and the benefits are balanced."

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