The latest report of the Independent Monitoring Commission has found that dissident republicans in Northern Ireland are working more closely together to heighten their violent threat to the political process.
The Commission said the dissidents could be undermined by the devolution of policing and justice powers to the Northern Ireland Assembly.
The IMC warned that dissident republican groups posed a major challenge to security forces.
It said the overall level of dissident activity was markedly higher than when they began their work in 2003.
Earlier this year, the Real IRA shot dead two British soldiers outside Massereene barracks in Antrim.
Also in March the Continuity IRA shot dead a policeman Stephen Carroll in Craigavon.
The IMC also revealed that individual members of these groups were working together to increase their threat.
The report says the early devolution of policing and justice powers to Stormont could provide a potent intervention, because these issues would no longer be a point of contention across the divide.
The Northern Secretary Shaun Woodward welcomed the report as one of its most significant.
He said it should be hugely influential in informing Assembly members to make an early decision about the transfer of policing and justice powers from Westminster.
Mr Woodward said: 'This report should be essential reading for every politician in Northern Ireland. The IMC has analysed the real current threat posed by dissident republicans.
'Importantly it also offers a solution to deal with the threat by the early devolution of policing and justice powers to the Assembly and the Executive.
'In its customary way, the IMC has carefully analysed the most recent six month period and reported 'the range and tempo of dissident republican activities as the most serious current threat'.
