Syria has agreed to an Arab League demand to allow in observers to monitor its crackdown on anti-government protests.
The Assad regime however placed conditions on the Arab League's protocol, namely the suspension of all sanctions placed by the Arab League last week.
Syria is also demanding the annulment of its suspension from the body.
The Arab League's secretary general Nabil al-Araby responded saying any lifting of sanctions must be agreed to by the bloc's members.
Syria held military exercises on Sunday, testing out long-range missiles and helicopters in a show of force, thought to demonstrate its capability of responding to any armed threats.
Meanwhile, reports indicate the leadership of Hamas, based in Damascus, is considering leaving Syria. Senior members and their families are thought to have already left Damascus, settling in neighbouring countries as international pressure on President Bashar al-Assad is increasing.
But the claim was denied by a member of Hamas's political bureau, Salah al-Arouri.
"The organisation's top officials are here in Damascus; our relations with the state and Syrian people are excellent," he said.
"We respect all Syrians whoever they are. We have no intention of interfering in Syria's internal affairs."
