Guterres met yesterday with President Nicos Anastasiades, the Greek-Cypriot leader who heads Cyprus's internationally- recognised government, and his Turkish-Cypriot counterpart Mustafa Akinci. He also met with the so-called guarantor powers Greece, Turkey and Britain.
Guterres' spokesman said the series of talks, held in the Swiss alpine resort of Crans-Montana, was "highly constructive... A positive, results-oriented meeting."
"A clear understanding emerged of the essential elements of a package that might lead to a comprehensive settlement in Cyprus," the spokesman added.
The negotiations have been billed as the best chance for resolving one of the world's longest-running political crises.
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Cyprus has been divided since 1974 when Turkish troops invaded and later occupied its northern third in response to an Athens-inspired putsch seeking union with Greece.
Turkey maintains more than 35,000 troops there.
Hopes of reunification depend greatly on a drastic reduction of Ankara's military presence.
Several previous peace drives have stumbled over the issue, with Greek-Cypriots demanding a total withdrawal of what they say is an occupying force and minority Turkish- speakers fearful of ethnic violence in the event of a pullout.
The talks began in an upbeat mood on Wednesday.
However, a source close to the discussions said that the atmosphere hardened on a number of issues -- particularly the Turkish-Cypriot demand for an alternating presidency in any future united state.
Cavusoglu also told reporters the Crans-Montana talks would be the "final conference" on the Cyprus problem, adding: "We need to reach a settlement.