A third day of talks between Fianna Fáil and the Green Party on forming a coalition government ended in Dublin this evening with cautious optimism a deal can be done.
John Gormley leading the Green Party for talks at Government Buildings yesterday
Speaking after the negotiations tonight, senior Fianna Fáil negotiator Séamus Brennan said the two parties had exchanged "very, very detailed" documentation on a number of issues but said the issue of health remained a major stumbling block.
"The health area is one area that we have still to make some good progress on. We are still in the middle of that," he said.
The Green party is opposed to Fianna Fáil and PD co-location plans - the building of private hospitals on public hospital grounds.
"We have three days of intensive discussions behind us," Mr Brennan added.
"We should be able to get there. That's a cautious prediction on my part that we will get there."
The parties have already exchanged policy documents and during several hours of talks at Government Buildings yesterday they discussed the economy, social welfare reforms, agriculture and the arts. Further papers and proposals for government are to be exchanged as the talks intensify.
Both sides have said meetings to date have been constructive but refused to be drawn on speculation that space in a "grand coalition" was being set aside for the PDs and a handful of independents.
Independent TDs Michael Lowry, Jackie Healy Rae and Beverly Cooper Flynn are already believed to have lent their support to the plan.
Fianna Fáil and the Greens insist many issues have yet to be dealt with in the negotiations.
Talks are expected to last several days with the Greens believed to be keen to have proposals to put to party members at a special conference on Sunday.
The Dáil is due to sit again on June 14th when a vote is to be taken on the next taoiseach.
Fianna Fáil deputy leader and Minister for Finance Brian Cowen is heading up his party's team along with Mr Brennan and Noel Dempsey at the talks in Government Buildings.
Green Party chairman John Gormley, former TD Dan Boyle and Donall Geoghegan, the party's general secretary, are involved on the other side. Green Party transport spokesman joined today's talks.
Further talks are expected to take place tomorrow after a Cabinet meeting and on Thursday.