The Attorney General, Mr Michael McDowell, has had tentative talks with senior members of the Progressive Democrats about rejoining the party, which has been hit by two damaging defections in recent days.
It is understood that Mr McDowell has expressed an interest in rejoining the party from which he resigned in bitter circumstances in 1997 - but only if he is given a senior role in reshaping party policy.
The party suffered a second blow yesterday when Cork county councillor Mr Peter Kelly announced he was leaving to join Fine Gael. He said the ideals that attracted him to the PD shave been forgotten and it was clear to him that the party had "lost its identity and its relevance to itself and the electorate". A Labour Party source confirmed last night that the leader, Mr Ruairi Quinn, met Mr Kelly on Saturday night to discuss the possibility of him joining Labour. The Labour source said the meeting had been sought by Mr Kelly.
Senator Helen Keogh announced her departure from the PDs to join Fine Gael last Wednesday, when she accused the party of "melting" back into Fianna Fail.
A decision by Mr McDowell to rejoin the PDs would give the party a huge boost. He left the Progressive Democrats after he lost his seat in Dublin South East to Mr John Gormley of the Green Party, after a marathon recount at the last general election.
It became apparent last week that he still has the interests of the party at heart when he played a role in attempting to get Senator Keogh to change her mind about joining Fine Gael. He offered to go to the senator's home in Killiney last Tuesday night to talk her out of leaving the party she helped found 15 years ago.
Mr McDowell met Senator Keogh briefly in her office in Kildare Street on Wednesday, hours before she told her parliamentary party colleagues she was leaving.
The Attorney General refused to comment yesterday on speculation that he would be rejoining the party, possibly before the party's national conference in November, and that he would be a PD candidate in Dublin South East in the next general election.
However, a senior party source said "tentative" talks have begun. "It could be put like this - the long process of bringing him back has begun. But there is a long way to go," the source said.
Mr McDowell is closest in the Progressive Democrats to Minister of State, Mr Robert Molloy, who has a Cabinet seat. It is understood that Mr McDowell intervened in the Helen Keogh issue at the invitation of Mr Molloy. It is also understood that Mr McDowell has met the party general secretary, Mr John Higgins, recently to discuss the possibility of rejoining the party and contesting the next election in Dublin South East.
"There is no question that everyone was delighted to see Michael McDowell involved in the Helen Keogh issue. There are no demands on the table yet from him. The negotiations are very tentative. It is all to play for."
However, it is understood that Mr McDowell will rejoin the fold only if he is given a senior role in the party.
Mr Higgins told The Irish Times last night that he believed there would be no more defections from the party. "I have not been informed of any member of the organisation in either Dun Laoghaire or Cork South Central resigning with Helen Keogh or Peter Kelly.
"In fact in relation to Dun Laoghaire, four former members who had left the party because of Helen Keogh have contacted me to say they are prepared to rejoin.
"This is it now. We have got to stop this butterfly politics syndrome. We have to get over this hump and concentrate on rebuilding and reshaping the party. And that is what we intend doing."