The UDA may hold a massive show of strength in Belfast this weekend in an attempt to force out supporters of Johnny Adair from the Shankill.
The paramilitary group is considering plans to put several thousand members onto the streets in mass opposition to Adair's Shankill Road "C company".
Thousands of loyalists will attend the funerals tomorrow of John Gregg (45), the UDA's south-east Antrim commander, and his associate, Robert Carson (33), who were shot dead by Adair's supporters last weekend.
Senior loyalist sources said a series of "war councils" would take place after the funerals. Plans would be discussed to bring UDA members onto the streets on Saturday.
"They are considering converging on the lower Shankill estate from other areas of Belfast. They would then remove all Adair's remaining supporters from the area," the source said.
Yesterday, the UDA's ruling body, the inner council, gave C company members until noon tomorrow to disassociate from Adair or face death.
In an apparently choreographed series of statements to isolate the jailed UDA commander, A, B and D companies - comprising west Belfast and part of Co Down - issued a statement condemning Adair, as did the Loyalist Volunteer Force (LVF), which previously had close links with him.
However, Adair's closest associate, John White, yesterday emerged from hiding to say he wasn't frightened and the UDA leadership could not dictate to its rank and file.
In its statement, the inner council said rank-and-file members of C company had been "the backbone" of the UDA in "its fight against Irish republican terrorism" over 30 years.
Those members could remain in the organisation but had to relocate to A or B company by noon tomorrow. If they refused, they would be "treated the same as the enemies of Ulster".
In its statement, the "officers and volunteers" of A, B and D companies said they had voted at a meeting not to recognise C company's current leadership.
There had been some speculation the LVF could be drawn into the feud in support of Adair. However, in its statement yesterday, the LVF said it wanted to play no part in the feud, which it hoped would be speedily resolved. It described the killings that have taken place as "unnecessary deaths".
However, White yesterday appeared defiant as he returned briefly to his luxury home in Carrickfergus, Co Antrim, which he fled last weekend.
As he drew up at the house, heavily armed police and British soldiers, who were keeping it under surveilliance, leapt from Land Rovers to take up positions in surrounding fields.
A truce could be brokered only when the UDA leadership lifted threats to kill him, White said.