Northern Ireland Secretary John Reid tonight pledged to come up with a formula to save the North's crisis-hit peace process.
Dr Reid held emergency round table talks with unionist, nationalist and non-aligned pro-Belfast Agreement parties after David Trimble's failure to be re-elected in the Stormont Assembly as First Minister of the power-sharing executive.
The crisis opened up the prospect of new Assembly elections in the New Year but Irish and British officials were working urgently with the North’s politicians to come up with a deal to avoid the parties having to go to the polls in January.
Dr Reid said: "A resolution can be available in the very near future if we continue to make the progress we have made over the last few hours.
"I can't guarantee success but I think there are reasonable grounds for believing we can move forward on the issue reasonably rapidly."
The British government may be forced to suspend Northern Ireland's power-sharing government if a new First and Deputy First Minister cannot be elected by tomorrow's deadline of midnight.
Rebel Ulster Unionist Assembly members Peter Weir and Pauline Armitage blocked their leader David Trimble's return as Stormont First Minister alongside SDLP Assembly member Mark Durkan as Deputy First Minister.
Mr Trimble and Mr Durkan got the support of all the nationalists in the Assembly but fell one vote short of the majority of unionists needed to be elected to their posts.
Ulster Unionist Party officers began disciplinary proceedings against the two rebel members. Even though the possibility of fresh Assembly elections were not being ruled out, there was speculation the Irish and British government’s may put the institutions on hold for one day to buy more time to resurrect the multi-party executive of unionists and nationalists.
There was also pressure on the cross community Alliance Party to redesignate its five Assembly members as unionists ahead of tomorrow's midnight deadline to help Mr Trimble and Mr Durkan if the Assembly is recalled to vote again.
Dr Reid said the province's politicians needed to restore fully functioning devolved government which was popular with the people of Northern Ireland.
In a spirited defence of devolution, he expressed frustration that despite 70 per cent of Assembly members backing Mr Trimble's return to the top post in the multi-party cabinet he could not be elected under current rules.
He declared: "I believe we all need to do whatever is necessary to move this process forward because people are fed up with delay and fed up with lurching from crisis to crisis.
"I hope that I will be able to make a further statement once the discussions have concluded tomorrow."
Dr Reid insisted there were "grounds for believing we can create the political context in which a successful election can take place.
"I can't guarantee that, I can't work miracles, I can't be sure of it but I am telling you as honestly as I can that we have made progress."
The Taoiseach, Mr Ahern tonight pledged every effort to "protect" the Belfast Agreement.
He welcomed the Ulster Unionist leader's commitment and determination to continue his efforts to pursue full implementation of the Belfast Agreement, and declared: "I believe this setback can be overcome.
Mr Ahern also reported that the Government was in continuing contact with the British government and the pro-agreement parties.
He said: "It is vital that all the pro-agreement parties stand together and work closely with one another as a matter of urgency to find a way forward.
"We must do everything possible to protect the Good Friday agreement. It offers the best future for all of the people of Northern Ireland and these islands generally.
"Despite today's result, it is clear that the agreement commands overwhelming support both within the assembly and in the wider community.
"We will spare no effort to see it implemented in full."
British government sources indicated tonight that Northern Ireland Secretary John Reid would continue discussions with the province's parties through the night by phone. Members of the cross community Alliance Party's executive were in the meantime due to hold an emergency executive meeting to consider the issue of redesignation of its five Assembly members as unionists to help Mr Trimble's re-election.
A party source said: "No decision has been taken yet.
"Whether there is enough grounds for this is difficult to say. We also require the support of other parties and I don't know if they are willing to go along with this."
The Alliance's leadership team was also meeting the Ulster Unionists and SDLP at Stormont ahead of tonight's meeting.
There was also the possibility of a meeting with Sinn Féin.
A Northern Ireland Office source repeated John Reid's optimism that the progress made in today's talks at Stormont could be built upon.
"A lot of good work was done at the meeting," he said.
"But it is also in the hands of the parties now and the Presiding Officers of the Assembly."
There was concern, however, at Stormont tonight that a meeting of the Assembly might not be able to take place before tomorrow's midnight deadline because the Speaker Lord Alderdice was travelling to France.
Nationalist and unionist sources were tonight hopeful that a vote for First and Deputy First Minister could take place on Monday.
"As I understand it if the Secretary of State is satisfied a process to elect First and Deputy First Ministers has begun and the vote will take place soon, he can withhold the suspension of the political institutions to enable a session of the Assembly to take place as soon as possible," one source told PA News.
"So it's feasible we could be coming back on Monday to have another crack at electing David Trimble and Mark Durkan.
"Obviously it will depend on Alliance redesignating. So the ball's very much in their court."
PA