Republican sources last night believed many "Real IRA" units in the North would continue their armed campaign despite a statement from the organisation's prisoners in Portlaoise calling for its leadership to stand down.
So far there has been no similar statement from "Real IRA" prisoners in Maghaberry jail, Co Antrim. Many "Real IRA" members in Belfast, Derry, and Co Armagh and Co Down remained committed to continuing their campaign, the sources said. It is opposed by a senior republican, Liam Campbell, who is originally from south Armagh.
Campbell is no longer on the "Real IRA" wing in Portlaoise following an internal dispute.
Republican sources along the Border last night expressed "sadness and confusion" at events.
They said there had been "a complete breakdown in contact" between the majority of prisoners in Portlaoise and the external leadership which is believed to be in regular contact only with Campbell. "This was a big problem," they said.
Sources close to both sides said it was a purely peaceful disagreement and would "definitely remain that way".
Mr Michael Gallagher, whose son Adrian was killed in the Omagh bomb, said the statement was "great news" but he wanted to know at what price.
"The Irish Government must come clean about how this was brought about and what concessions and incentives were given," he said. In their statement, the Portlaoise prisoners - who include some of the "Real IRA's" founding and most experienced members - called on its army council to "stand down with ignominy" and made allegations of corruption.
"We will not demean our struggle or provide succour to our enemies by revealing the comprehensive catalogue of evidence which has exposed this leadership.
"However, we do feel duty-bound to state that this army leadership's financial motivations far outweigh their political commitment to our struggle at this time."
They reaffirmed their commitment to republican principles and "steadfast opposition" to the Belfast Agreement and British rule in Ireland. They insisted there had been no negotiations about their early release. Sources close to the prisoners said they were in no way "selling out or capitulating to the British like the Provos".
"This statement was made with a heavy heart. It is a very reluctant step but a very necessary one. To continue would do more harm than good to republicanism. There is no other way," a source said.
Other republican sources said while the statement was significant, because of the background and calibre of its authors, prisoners lost all rank when they entered jail. They claimed the statement "played into the hands of the Provos and the British".
They said the "Real IRA's" external leadership believed "there can be no ceasefire while the British remain in Ireland".
This was the "official position" of the organisation from previous statements and "there is no reason for change".
The "Real IRA" was formed after a split with the Provisional IRA in 1997. It called a ceasefire after the Omagh bomb which killed 29 people the following year but quickly regrouped. It has carried out a range of bomb attacks on the security forces in the North and in Britain, including a rocket attack on MI6 headquarters.
Meanwhile, a senior Provisional IRA source said the organisation is concerned at recent political developments and "sustained efforts" to present it as a threat to the peace process.
"The IRA is not a threat to the peace process and will not accept the imposition of unrealisable demands," he said.