BRUSSELS, June 21 (Reuters) - Talks between an international fund and families of HIV-infected children in Libya have not yet agreed a financial package for them, a lawyer for foreign medics sentenced to death in the case said on Thursday.

However, the lawyer and European Union officials said there were grounds for optimism that an accord could be reached soon which could in turn allow the release of five Bulgarian nurses and a Palestinian doctor found guilty of infecting the children.

"We are optimistic but we remain extremely cautious ... because there is no deal yet, because nothing is certain about the verdict that will possibly be given on July 11, as it could also be postponed," lawyer Stephane Zerbib told Reuters.

Zerbib was referring to a scheduled July ruling by Libya's Supreme Court on an appeal by the medics, who were convicted in December of infecting 426 children in a trial that has slowed OPEC member Libya's efforts to end its international isolation.

A spokeswoman for EU External Relations Commissioner Benita Ferrero-Waldner, who has been involved in European efforts to produce an agreement with the families, said: "Talks are ongoing. The signs are encouraging."

Sofia says it will not compensate the families, arguing that would be an admission of guilt. But it has set up a solidarity fund along with the EU and the United States to provide medical aid and financial support to the children and their relatives.

The association representing the families is seeking around 10 million euros (almost $14 million) for each family.

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