"According to a Turkish journalist who traveled to Baku with Babacan, an outline agreement was reached between Azerbaijan and Armenia over Karabakh after several meetings at the presidential and foreign minister levels. The Organization for Security and Co-operation in Europe (OSCE)'s Minsk Group, created in 1992 to encourage a peaceful, negotiated resolution to the conflict over Karabakh, has visited Baku and Yerevan in recent few months. According to reports, the Minsk Group has facilitated a tentative agreement between Azerbaijan and Armenia concerning the return of seven towns in Karabakh that were seized by Armenia in 1991-1993 and remain under the control of Armenia. These provinces may be handed back to Azerbaijan within a designated period, and Azerbaijani refugees will be allowed to return their homes. The status of Karabakh will be discussed later, but for now Karabakh will be handed over to an interim government, and new corridors will be opened between Armenia and Karabakh, according to this draft agreement (Sabah, February 10)."
I can't tell if all Azeri refugees will be allowed back into Karabakh, or if that applies just to thosein the seven towns within the Armenian-controlled perimater. Discussing final status issues later hasn't worked very well with Kosovo or the Israeli-Palestinian conflict, but at least Armenia could get its borders open again.
UPDATE: Everyone involved is denying the story.