Pacquiao confirmed to ABS-CBN correspondent Dyan Castillejo that he had agreed to sign the fight's contract.

Castillejo quoted Pacquiao as saying, The fight is on!

She said Pacquiao told her the fight will be held in Las Vegas on May 2.

Castillejo said that Pacquiao had discussed with his promoter, Bob Arum, the "new arrangements" of the fight. The Filipino boxer, however, did not disclose the new terms, but said Arum was happy about it.

A PhilBoxing.com report quoting Rex "Wakee" Salud said Pacquiao had agreed to a 52-48 pay-per-view split in his favor and a $12 million guaranteed purse.

The report said Pacquiao made Salud drink three bottles of beer on Thursday night before agreeing to sign the contract.

The PhilBoxing report said Arum may fly to the Philippines for the official announcement.

On Wednesday, Pacquiao failed to meet the 6 p.m. deadline set by Hatton's camp. Pacquiao reportedly wanted a bigger guarantee purse.

Franklin "Jeng" Gacal, Pacquiao's lawyer, said the decision was not about money, but principle. He said Pacquiao wanted a little respect from Hatton's camp in the negotiating table.