It is now highly unlikely that the members of a new Northern Executive will be elected when members of the Assembly meet tomorrow.
But there is growing speculation that face to face talks between the DUP and Sinn Féin leaders will be held in the morning.
The parties are looking to agree a timetable and basis for power-sharing that will be acceptable to the two governments.
The British and Irish governments are insisting the north's parties must decide between devolution and dissolution by midnight tomorrow. But, they also say they will consider any proposal that the support of all the parties.
The Northern Secretary, Peter Hain, has said he will not bring in new legislation to change tomorrow's deadline for devolution, unless the North's parties strike a deal on power-sharing in the coming hours.
Mr Hain today signed a restoration order to devolve power tomorrow from Westminister to Stormont, despite a decision by the DUP not to nominate ministers to a power-sharing executive at Stormont by the deadline, but to share power in May instead.
Mr Hain said the North's parties will have the choice of devolution or dissolution, but if they come up with some agreed proposal among themselves, the two governments will consider it.
Mr Hain has said he will not bring in new legislation to change tomorrow's deadline for devolution, unless the North's parties strike a deal on power-sharing during talks tomorrow.
Mr Hain said the Northern's parties will have the choice of devolution or dissolution when they meet, but if they come up with some agreed proposal among themselves the two governments will consider it.
Earlier, The Taoiseach, Bertie Ahern has said that yesterday's decision by the DUP not to nominate Ian Paisley as First Minister tomorrow, but to share power in May, means the legislative deadline for power-sharing cannot now be met.
Mr Ahern said the DUP's decision was disappointing and created difficulties.
Speaking on RTÉ Radio's This Week programme, Mr Ahern said he will meet British Prime Minister Tony Blair in Berlin today and they will both see how they can go forward.
May power-sharing: DUP
Yesterday, to preserve party unity, the DUP said it would share power with Sinn Féin in May, not from tomorrow.
Now, if Ian Paisley's party wants to be the major party in a devolved government, it must get agreement on a way forward with the other parties, including Sinn Féin.
Even though Peter Hain has signed the order to devolve power at Stormont, it is clear there will be no appointment of an executive tomorrow.
It there is no deal before midnight devolution will crash, and after midnight power will be taken back to direct rule ministers to avoid a responsibility vacuum.
The only way that will change is the parties coming to Mr Hain and saying we have an agreement on how to move forward.
Face to face talks involving the DUP led by Ian Paisley and Sinn Féin led by Gerry Adams are on the cards tomorrow.
