UPDATE: The court hearing between federal authorities and Apple has been canceled as the FBI works with an 'outside party' to unlock the phone.
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ORIGINAL STORY:
Federal authorities have asked to hold off on a much-anticipated court hearing set for Tuesday over the FBI's demand for Apple to help unlock an encrypted iPhone used by one of the San Bernardino attackers.
In a filing late Monday, federal prosecutors said "an outside party" has come forward and shown the FBI a possible method for unlocking the phone used by one of the shooters in the Dec. 2 terror attack.
Authorities say they need time to determine if the method will work without compromising data on the phone.
If the method works, the government said, it would eliminate the need for Apple's assistance.
Apple has fought the court order, saying the government's demand for assistance would make other iPhones vulnerable.
In a statement, U.S. Justice Department spokeswoman Melanie Newman says the government is "cautiously optimistic" that the possible method will work.
