BRUSSELS, Oct 18 (Reuter) - The European Union and Morocco were set on Wednesday to wrap up a new fisheries agreement by the end of the week.

"All the elements are there to finish within the week," European Commission fisheries spokesman Filippo di Robilant said ahead of a second session of negotiations later today.

The talks will settle the technical details of a political compromise, announced on Friday by EU Fisheries Commissioner Emma Bonino, which ended months of deadlock over renewal of the EU's most important fisheries agreement.

At stake are the fate of 730 fishing vessels currently tied up in Spanish and Portuguese ports and 40,000 jobs.

The talks were expected to start again at five p.m. (1600 GMT) after the Commission, the EU's executive, had briefed member states.

Di Robilant said the two sides had reviewed the compromise when they formally started the seventh round of negotiations on Tuesday evening.

During a 90-minute session the EU and Morocco listed points which still had to be discussed. These included minor fish species such as hake, control measures, licensing and inclusion of Moroccans in EU fishing crews.

Bonino said on Friday that the EU and Morocco had agreed the general framework for a new four-year agreement, one year longer than the previous accord which was scrapped by Morocco at the end of April.

In the new agreement, the EU will reduce fishing in Moroccan waters and will land part of its catch in Moroccan ports.

Although Bonino gave no figures, sources said the EU would reduce catches of squid and octopus by 40 percent, of shrimps by between 30 and 34 percent and of sardines by 20 percent.

Morocco had initially demanded a 65 percent cut in catches ofsquid and octopus -- the most important catch. Sardines, which are the main catch for the numerous small-scale fishermen, will be cut back the least.

EU vessels would also land 30 percent of their squid and octopus catches in Moroccan ports by the end of the fourth year.

The EU would pay compensation of $162 million a year in return for fishing rights, compared with $135 million under the previous three-year accord.

The new agreement would also include better protection for fish stocks, including stricter fisheries inspections.