Dr Jim Swire, who lost his daughter Flora in the 1988 bombing that claimed 270 lives, said yesterday that any move to persuade Colonel Gaddafi to support a trial on neutral soil was a positive development.
His comments come after reports that Egyptian president, Hosni Mubarak, had set up a meeting between the Libyan leader and representatives of the Arab League in Tripoli.
"If this is true then I regard this as a very positive step forward," he said.
"They [the Egyptians] have made an extremely helpful contribution and if Mr Mubarak has set up another meeting I would be delighted because they have the best chance of getting a positive result."
Dr Swire, a spokesman for relatives of British victims, said he was now very hopeful of a trial of the two suspects, Abdel Basset al-Megrahi and Lamin Khalifah Fhimah, in The Hague, Holland.
"Now that the principle of a neutral trial is being looked at by Britain and America very seriously it is impossible to stop the process which has been initiated. This is a time of optimism and I think we have made tremendous developments in the past weeks."
Britain and America are widely tipped to drop their opposition to a trial on neutral soil in the coming weeks.