The Taoiseach, Bertie Ahern, has said he sincerely believes a deal can be done with the DUP, which could see power sharing restored in the North.
Mr Ahern was speaking after almost two hours of informal talks with Tony Blair at the British Prime Minister's constituency home in Sedgefield in Co Durham.
The two leaders met to discuss their strategies for next week's talks involving the Northern parties at Leeds Castle in Kent.
Speaking after the meeting, the Taoiseach said it was frustrating that the North's assembly had been suspended for two years and added that he hoped there was now enough political will for a solution.
Both governments have said next week's negotiations will provide the last chance to restore devolution and save the political institutions set up under the Good Friday Agreement.
Mr Blair has warned that if the Leeds Castle talks do not produce a deal, then all parties involved will have to look for another way forward.
