So far, Government officials and public sector unions have failed to reach agreement on mechanisms to shave €1.3bn off the public sector pay bill next year.
Earlier this afternoon, it was suggested that the talks may be running out of time.
The General Secretary of the Irish Congress of Trade Unions, David Begg, said unions had to decide whether or not Thursday's strike would go ahead.
It is understood that most of today's negotiations have focussed on the difficulty of implementing compulsory unpaid leave in the health sector without impacting on services.
Throughout the day, negotiations between Government officials and public sector unions have intensified due to time pressures.
Unions will have to make a call soon as to whether sufficient progress has been made to warrant calling off Thursday's nationwide strike.
Meanwhile the Government needs to finalise its payroll plans for next year, so that the rest of the budget can be planned.
The key to the union's proposals for avoiding across the board pay cuts is the introduction of compulsory unpaid leave for state employees.
However, the challenge is to implement such an arrangement without damaging services for the public.
Intensive work is continuing on coming up with an accurate valuation of the savings from unpaid leave.
Union sources believe that a deal can be done, but that talks are slow.
However, there is still some scepticism on the Government side as to whether this proposal can deliver the required savings.
