Taoiseach Bertie Ahern and British Prime Minister Tony Blair are flying into Northern Ireland today to attempt to resuscitate the flagging peace process.
The two premiers will meet all the pro-agreement parties at Hillsborough Castle in Co Down as part of frantic efforts to restore devolution before proposed Assembly elections on May 1.
The Governments are expected to present the parties with a blueprint for getting the power-sharing executive up-and-running in time for elections to be called on March 21.
Unionists have claimed the onus is on republicans to act after allegations of an IRA spy ring at Stormont caused the collapse of the institutions last October.
However, as Sinn Fein insisted further moves from the British government were needed on policing, demilitarisation and criminal justice, press reports have suggested the IRA is set to make a major decommissioning move.
Secretary of State Paul Murphy said there was “a lot to be hopeful about” in advance of the talks and insisted he was convinced the parties were ready to make progress.
"There is everything to play for and I think if people get together and talk about going forward and not looking backwards, there is a possibility – a very strong possibility – that we can deal with those issues positively in the days ahead of us,” he said.
“There is a lot to be hopeful about. I am convinced that political parties in Northern Ireland do want to accept that and move forward,” he added.
Sinn Fein's Martin McGuinness told crowds at a republican memorial in south Armagh that progress had been made in behind-the-scenes talks.
He said: “Some movement has emerged, particularly around a British government commitment to new legislation on policing and criminal justice.”
Mr McGuinness said progress was also made on other matters which did not require legislation, before hitting out at Ulster Unionist leader David Trimble, who suggested sanctions should be imposed on Sinn Fein if the IRA indulged in paramilitary activity.
Mr Trimble claimed the IRA must decommission its weapons and declare its war is over before Sinn Fein can return to government.
“Their acts must start with proper, open decommissioning and continue with saying the war is over and ensuring that it will not start again – the IRA does have to go away,” he said.
Any possible deal to emerge from the talks would have to be ratified at a special Ulster Unionist Council meeting later this month.
However, this could prove difficult as anti-agreement MPs Jeffrey Donaldson and David Burnside have expressed their reluctance to re-enter a power-sharing executive with Sinn Fein.
Mr Murphy denied reports that the British government was considering an amnesty for IRA suspects on the run prior to the talks, but said the problem would be discussed at Hillsborough.
He also confirmed that the creation of a “verification monitor”, who could ensure that paramilitaries hold to any promise to cease activities, was being considered.
“There have to be guarantees for all parties,” he added.