Negotiations between Fianna Fáil and the Progressive Democrats may conclude ahead of schedule, according to optimistic predictions last night.
Sources on both sides said good progress had been made at yesterday's talks in Government Buildings and may even be concluded tomorrow.
The Taoiseach, Mr Ahern, said on Monday that he hoped the talks would be finished by the end of the week.
The negotiations went on for almost seven hours yesterday. One Fianna Fáil source said that while at times they could be quite tedious they had not "hit any rocks".
Matters of contention were parked until later in the negotiations and the issue of the division of Cabinet seats between both parties is being left to the Taoiseach and the Tánaiste, Ms Harney.
If the talks are concluded successfully it is expected that a programme for government, similar to that produced in 1997, will be published.
Both teams met at 8.30 a.m. yesterday and continued until 11 a.m., when they broke for a PD parliamentary party meeting. It was attended by the PD negotiators: the Attorney General, Mr Michael McDowell; Laois-Offaly TD, Mr Tom Parlon; and party chairman, Mr John Minihan.
PD deputies and senators were given a general report on the talks, telling them that documents based on the parties' election manifestos had been exchanged and progress had been made.
They were told there would be further information in a few days time.
A considerable amount of the meeting was concerned with explaining the Oireachtas facilities to the new TDs, as well as how to organise their constituency work. The Minister of State, Ms Liz O'Donnell, who is taking a short holiday break, was not at the meeting.
The talks resumed at 1.30 p.m. and went on until 5 p.m. The Minister for Foreign Affairs, Mr Cowen, a member of the Fianna Fáil team, yesterday told RTÉ News that progress had been made in a number of areas but there were still a number of outstanding issues.
"There are issues upon which we are still having discussions," he said. Asked if they would conclude on schedule, he replied: "The Taoiseach and Tánaiste have expressed the hope that that would be the case. We have to see if we can conclude it successfully by then."
The Minister for the Environment, Mr Dempsey, and the chief whip, Mr Seamus Brennan, are the other members of the Fianna Fáil team. Both sides are accompanied by advisers.
One senior Fianna Fáil source said his party had made it clear to the PDs that their message during the general election campaign that Fianna Fáil could not be trusted must cease.
"We made it clear before the negotiations began that this was a partnership. The backbenchers wouldn't stand for it if they kept that up: 700,000 people voted for us so we couldn't all be crooks." The meeting broke up at 5 p.m. yesterday so both sides could take stock; it resumed at 9 p.m. They are expected to meet again this morning.