The British Prime Minister tonight canceled plans to go to Northern Ireland next week to try to restore devolved government.
Downing Street sources said the decision not to make a trip, which had been widely expected, was made after Tony Blair had separate talks with the Democratic Unionist Party, Ulster Unionists and SDLP.
With scant signs of a meeting of minds between the parties which could lead to progress towards the restoration of the power-sharing administration at Stormont, Mr Blair decided to stay in London.
He apparently wants to meet with Sinn Fein again before mapping out his plans on the way forward. Sinn Fein holds it annual conference in Dublin this weekend and it will give an indication of the mood within republicanism.
After meeting Mr Blair, DUP leader the Rev Ian Paisley expressed pessimism. "There is no agreement. There is a great big gulf, the Prime Minister must do something," he said.
He said Mr Blair should keep to his promise that criminality would end and terrorism end and then everyone could move forward.
"If he doesn't keep to that, we have said as far as we are concerned there is no use talking."
Ulster Unionist leader Sir Reg Empey emerged from his talks with Mr Blair in the House of Commons insisting the talking cannot go on indefinitely.
"We told the Prime Minister we believe there needs to be a floor put on these talks, they can't to on and on and on, " he said.
Sir Reg declined to put a date on when the Government should call it a day if there was no progress.
He said the whole talks process needed to be more open. "The whole process has been marred by secret deals and side deals. The public need to see what is happening and see what is on the table."
Despite the down-beat mood after today's talks, Ulster Political Development Minister David Hanson is planning more meetings with the parties in Belfast tomorrow.
Next Monday Northern Ireland Secretary Peter Hain and Irish Foreign Affairs Minister Dermot Ahern co-chair a further round of discussions with the parties at Hillsborough Castle.
Mr Blair's talks took place the day before the Government is expected to publish legislation which would allow the Northern Ireland Secretary to call early Assembly elections if the political parties actually reached an agreement.
At present the next election is fixed for the spring of 2007, but it is understood the legislation would allow for him to bring them forward to later this year if he got a deal. However he would not be able to delay elections if there had been no deal by next spring.
Mr Hain has already said 2006 is make or break year and indicated he would he opposed to going ahead with an election in 2007 if there was no deal - so it could mean pulling down the shutters on Stormont.