By JOHN M. BRODER
Published: November 28, 2007

WASHINGTON, Nov. 27 — Congressional negotiators are nearing agreement on a measure to set significantly higher fuel economy standards for cars and light trucks, according to aides and lobbyists following the talks.

A deal could come as early as Wednesday to require all passenger vehicles sold in the United States to reach a combined fleetwide average of 35 miles a gallon by 2020. If enacted into law, the measure would be the first major increase in vehicle fuel economy standards in two decades.

The legislation would allow the automakers to calculate mileage based on the size and weight of vehicles, as long as their entire line of products meets the 35-mile-a-gallon standard, satisfying a central demand by Senate sponsors of the bill.

Such a deal would also provide incentives for the three big American manufacturers to continue building small cars in this country, preserving an estimated 17,000 jobs. The United Automobile Workers union and members of Congress from automaking states insisted on that provision as a condition of supporting the broader compromise.

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