The North's political process would be in deep trouble if a deal on devolving policing and justice powers is not agreed by Christmas, Deputy First Minister Martin McGuinness said today.
The comments came as Sinn Féin was locked in talks with the Democratic Unionists on the issue.
The offer of a £1bn (€1.1bn) government package to fund the move has failed to persuade the DUP and today a political crisis loomed.
Mr McGuinness and DUP leader Peter Robinson today held talks in Belfast with Foreign Affairs Minister Micheal Martin.
At a subsequent press conference which Mr Robinson did not attend, Mr McGuinness said: “What absolutely is an imperative is to have an agreement on the transfer of power, and a date for the transfer of power, before Christmas.
“I have to say if it slips past Christmas we are in deep trouble.”
Last night in a marathon 10-hour debate the Stormont Assembly voted in favour of legislation that prepares the way for devolution but during the debate a leading DUP member said it would be impossible to establish a new justice ministry in December.
Mr McGuinness today indicated that while Republicans may accept it could take longer to put the structures in place, failure to at least agree a firm deal by Christmas would have serious political implications.
Mr Martin said huge progress had been made in securing the peace process and developing the power-sharing government in Belfast.