The Taoiseach and the British Prime Minister will this morning discuss a possible timetable for developments which could lead to a restoration of the political institutions in the North in the coming months.
Mr Ahern and Mr Blair will meet on the margins of the EU summit here in advance of tomorrow's detailed Republican response to Mr Blair's call for major moves from all sides, including the IRA, to break the deadlock. Mr Gerry Adams is expected to give Sinn Féin's "considered response" in Monaghan tomorrow.
The Taoiseach and Prime Minister will this morning discuss the elements of a possible deal that could bring a breakthrough in advance of Northern Ireland Assembly elections due next May.
A major act of disarmament - or even a commitment to disbandment - by the IRA is seen as the key to progress following Mr Blair's call last week for "acts of completion" on all sides. Parallel "acts" by other parties that would form part of any breakthrough would include British legislation for further police reform; further reduction in the security presence in Northern Ireland; and a strong unionist commitment to work the power-sharing institutions in the context of a substantial IRA move.
Government sources are cautiously hopeful about a positive Sinn Féin response following Mr Adams's acknowledgment on Thursday that all sides must "take risks" if progress is to be made.
This morning, Mr Ahern is likely to put to Mr Blair the view that movement on some of the issues on Sinn Féin's "shopping list" - police reform, demilitarisation and the stabilising of the political institutions - could encourage the IRA to make the major move required.
However, with unionist confidence in the Belfast Agreement at a low ebb, concessions to nationalists in advance of any major IRA move would arouse further unionist anger.
Meanwhile, the Taoiseach said yesterday that he was looking forward to working with the new Secretary of State for Northern Ireland, Mr Paul Murphy, "as the two governments seek together to manage the current difficulties and challenges".
Mr Ahern paid tribute to the outgoing Northern Secretary, Dr John Reid, and congratulated him on his appointment as Labour Party chairman. Dr Reid had "played a significant role advancing the implementation of the Good Friday agreement", he said.
"I would like to express my personal appreciation and the appreciation of the Government for his valuable contribution to the process."
The Ulster Unionist Party leader, Mr David Trimble, welcomed Mr Murphy's appointment, saying that he had a "reputation for being a good listener".