British Chancellor Gordon Brown has promised to increase financial support for Northern Ireland to some £50 billion (€75 billion) over the next ten years if devolved government is restored.
The massive package was unveiled by Mr Brown after a meeting in Downing Street with an all-party delegation of Northern Ireland politicians.
It includes at least £35 billion over the next four years - up from £32 billion at present - and support for a £18 billion capital investment strategy until 2017. "This will provide the incoming Northern Ireland Executive with certainty to plan public service delivery," the Treasury said.
Before the meeting with Mr Brown, the Democratic Unionist Party that without extra financial support for a devolved executive, hopes of a political settlement could be scuppered.
Speaking alongside Northern Ireland Secretary Peter Hain, who also attended the talks, Mr Brown said afterwards: "To emphasise, this package is subject to an agreement on November 10th."
Taoiseach Bertie Ahern welcomed the announcement tonight, describing it as a "significant positive step forward" in the peace process.
"It is an essential part of the St Andrew's Agreement. It clearly shows what can be achieved when the Northern Ireland parties work together," he said in a statement.
"It is important that the parties continue their collective engagement with the Treasury with a view to following up on today's announcement.
"The Irish Government has been working with their counterparts in the British Government to look into ways to secure a significant financial component in the process which can benefit the entire island. I therefore welcome this announcement by the Chancellor and look forward to the two Governments working closely together on this issue in the coming weeks and months."
But the North's party leaders expressed disappointment that the Chancellor had offered no concessions on corporation tax for Northern Ireland companies, as they had demanded.
The Democratic Unionist Party suggested that the package as it stood was unacceptable and that a devolved administration was conditional upon a better deal. "The Chancellor has to start from some point - we might have hoped he could start from a slightly higher point than he did," DUP deputy leader Peter Robinson said. "It is necessary to get this package to a state where it is acceptable."
But Sinn Féin leader Gerry Adams said he hadn't expected all the issues to be sorted out today. "We have to come at this positively. The British Chancellor has come up with a whole series of measures. We have to look at the detail of it."
Mr Adams said the Chancellor had indicated he was prepared to talk further on the subject of corporation tax.
Ulster Unionist leader Sir Reg Empey added that they were "disappointed" by the response on corporation tax. "I don't think this marks the end of it," he said. "We have to use this as the commencement of a process."
Tonight's talks were held to discuss the economic issues arising from the summit in St Andrews, Scotland, last month between Mr Ahern and British Prime Minister Tony Blair. They outlined plans which they believe could have the suspended Northern Ireland Assembly up and running again by next spring.
The parties have been set a deadline of November 10th to respond.