We propose that declarative memories change both during waking and during sleep, and that such change contributes to enhancing binding of the distinct representational components of some memories, and thus to a gradual process of cross-cortical consolidation. As a result of this special form of consolidation, declarative memories can become more cohesive and also more thoroughly integrated with other stored information. Further benefits of this memory reprocessing can include developing complex networks of interrelated memories, aligning memories with long-term strategies and goals, and generating insights based on novel combinations of memory fragments.
for
Memory reactivation and consolidation during sleep, 2004 by Ken A. Paller1 and Joel L. Voss
http://learnmem.cshlp.org/content/11/6/664.abstract
which argues: