Enda Kenny and Micheál Martin spoke by telephone last night and have agreed to talk again today.
Contact between the two party leaders took place after their negotiating teams
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If the two leaders can agree a way forward then they will mandate their negotiators to resume talks.
Fine Gael want some form of water charges to remain in place, however Fianna Fáil want them suspended.
Fine Gael's Paschal Donohoe has said they are capable of tackling the issues.
“I believe that we are capable of dealing with the matters that are there,” said Donohoe.
“There are difficult issues for both parties, that is why we believe now that it is appropriate at this stage that we get instructions and guidance from our party leaders on theses matters.”